Assistance for Isolated Children Scheme...AIC Scheme: Policy Guidelines Contents — iii Contents...
Transcript of Assistance for Isolated Children Scheme...AIC Scheme: Policy Guidelines Contents — iii Contents...
Assistance for Isolated Children Scheme
Guidelines
Student Access Section Inclusive Education Strategies Branch Department of Education, Employment and Workplace Relations
Last Updated – 1 July 2009.
Enquiries about this document should be addressed to:
• Student Access Section
Inclusive Education Strategies Branch
Department of Education, Employment and Workplace Relations
Loc Code: C14MT4
GPO Box 9880, Canberra ACT 2601
The web address of this document is:
• http://www.deewr.gov.au
General AIC Scheme information and AIC Scheme Claim forms can be obtained from
Centrelink:
• at any Centrelink Office
• by telephone on 13 23 18
• at www.centrelink.gov.au
AIC Scheme: Policy Guidelines
Contents — iii
Contents
Abbreviations and acronyms x
Definitions for these Guidelines xi
1 General information about the AIC Scheme 1
1.1 Description ................................................................................................... 1
1.2 Objectives ..................................................................................................... 1
1.3 Eligibility ...................................................................................................... 1
1.4 Types of allowances ..................................................................................... 2
1.5 Legislative basis ........................................................................................... 2
2 Applicant eligibility 3
2.1 Requirements for applicants ......................................................................... 3
2.1.1 Applicants who can be approved ................................................... 3
2.1.2 Applicants who cannot be approved .............................................. 3
2.1.3 Parents as applicants ...................................................................... 4
Student lives with both parents ..................................................... 4
Student lives with one parent ........................................................ 4
Student lives with each parent separately ..................................... 4
Equal custody situations ................................................................ 4
Disputes over which parent should apply ..................................... 5
2.1.4 Non-parents as applicants .............................................................. 5
2.1.5 Organisations or institutions as applicants ..................................... 5
Definition of ‘full responsibility’ for a student ............................. 6
2.1.6 Claims received from a parent and from an organisation .............. 6
2.1.7 Only one claim per student may be accepted ................................. 7
2.1.8 New claim required when applicant changes ................................. 7
2.2 Residency requirements for applicants ........................................................ 7
2.2.1 Australian citizenship or permanent residency .............................. 7
2.2.2 New Zealand citizenship and permanent settlement in
Australia ......................................................................................... 7
2.2.3 Applicant must normally live in Australia ..................................... 8
2.3 Death of applicant ........................................................................................ 8
2.3.1 Where there is more than one applicant ......................................... 8
2.3.2 Where there is only one applicant .................................................. 8
2.3.3 Payments around the date of death................................................. 9
3 Student eligibility 11
3.1 Overview of student eligibility ................................................................... 11
3.2 Residency requirements for students .......................................................... 11
3.2.1 Australian citizenship or permanent residency ............................ 11
3.2.2 New Zealand citizenship and permanent settlement in
Australia ....................................................................................... 12
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Contents — iv
3.2.3 Student must live in Australia during the period of study ........... 12
3.2.4 International student exchange ..................................................... 12
3.3 Age limits ................................................................................................... 12
3.3.1 Age limits ..................................................................................... 12
3.3.2 Extension to age limits in special circumstances ......................... 14
Extension to minimum age.......................................................... 14
Extension to maximum age ......................................................... 14
3.4 Approved studies ........................................................................................ 14
3.4.1 Full-time study load ..................................................................... 14
3.4.2 Approved institution .................................................................... 15
3.4.3 Approved course .......................................................................... 15
3.4.4 Approved level of study ............................................................... 16
3.4.5 Effect of previous studies on AIC allowance eligibility .............. 16
3.5 Effect of other Australian Government payments on eligibility ................ 16
3.5.1 Payments that do not exclude eligibility ...................................... 17
3.5.2 Payments that affect the level of entitlement ............................... 17
3.5.3 Payments that exclude eligibility ................................................. 17
Choice between the AIC Scheme, Youth Allowance or
ABSTUDY .................................................................................. 18
3.6 Students in lawful custody or state-authorised care ................................... 18
3.7 Eligibility period ........................................................................................ 18
3.7.1 Eligibility commencement dates .................................................. 18
Short-term boarders ..................................................................... 18
Other boarders commencing on 1 January .................................. 19
Other boarders commencing after 1 January .............................. 19
Concession for late start .............................................................. 19
3.7.2 Eligibility for vacations ................................................................ 20
3.7.3 Usual date for cessation of eligibility........................................... 20
3.8 Death of student ......................................................................................... 20
4 Isolation conditions and special needs 21
4.1 Summary and definitions ........................................................................... 21
4.1.1 Reasonable daily access ............................................................... 21
4.1.2 Nearest appropriate state school................................................... 21
Usual definition ........................................................................... 21
Several schools within 56 kilometres .......................................... 22
Tertiary student ........................................................................... 22
Principal family home near state/territory border ....................... 22
4.1.3 Limited program schools.............................................................. 22
4.2 Geographical isolation rules ....................................................................... 23
4.2.1 Summary of rules ......................................................................... 23
4.2.2 Applying Rules 1 and 2 (distance to school) ............................... 23
Evidence requirements ................................................................ 23
AIC Scheme: Policy Guidelines
Contents — v
Measuring distance to school ...................................................... 23
Nearest available transport service.............................................. 24
4.2.3 Applying Rule 3 (reasonable access) ........................................... 24
Student without reasonable access .............................................. 24
Principles to determine circumstances beyond the family’s
control ......................................................................................... 24
Evidence requirements ................................................................ 25
Measuring distance...................................................................... 25
Measuring travel time ................................................................. 26
Special weather conditions .......................................................... 26
Impassable roads ......................................................................... 27
Non-access to private transport ................................................... 27
4.3 Students with special needs ........................................................................ 28
4.3.1 Summary ...................................................................................... 28
4.3.2 Definition of a disability or other health-related condition .......... 28
4.3.3 Evidence requirements ................................................................. 28
4.3.4 Duration of special need assessment ............................................ 29
4.3.5 Types of special needs ................................................................. 29
Student attends a special school .................................................. 29
Student needs access to special facilities or a special
environment................................................................................. 29
Student needs to study from home .............................................. 31
Student needs to be removed from local school environment .... 32
Student needs testing or support for a learning disability ........... 33
Student needs learning support ................................................... 33
Student would suffer serious educational disadvantage at
local school.................................................................................. 34
4.4 Students deemed to be isolated .................................................................. 36
4.4.1 Student lives in a special institution ............................................. 36
4.4.2 Parental occupation involves frequent moves .............................. 36
4.4.3 Student and sibling live in a second family home........................ 37
4.4.4 Student’s sole parent’s occupation requires frequent
overnight absences ....................................................................... 38
4.4.5 Continuation and concessions ...................................................... 38
Continuity of schooling concession ............................................ 38
Retrospective continuity of schooling concession ...................... 39
Conditions in year of assistance for students unable to
access a local state school ........................................................... 39
5 AIC allowances 41
5.1 General entitlement and payment features ................................................. 41
5.1.1 Which allowances apply .............................................................. 41
5.1.2 Calculation of amount of entitlement ........................................... 41
5.1.3 Payment frequency ....................................................................... 42
AIC Scheme: Policy Guidelines
Contents — vi
Term instalments ......................................................................... 42
Fortnightly instalments ............................................................... 42
Single instalment ......................................................................... 42
Short-term boarders ..................................................................... 42
5.1.4 Term instalment periods ............................................................... 43
Four-term states and territories ................................................... 43
Three-term state (Tasmania) ....................................................... 43
5.1.5 Taxation of allowances ................................................................ 43
5.1.6 Payee for allowances .................................................................... 43
5.2 Boarding allowances .................................................................................. 44
5.2.1 Basic Boarding Allowance ........................................................... 44
Purpose ........................................................................................ 44
Eligibility .................................................................................... 44
Approved boarding arrangements ............................................... 45
5.2.2 Additional Boarding Allowance .................................................. 45
Purpose ........................................................................................ 45
Eligibility .................................................................................... 45
Boarding costs ............................................................................. 45
Entitlement .................................................................................. 46
Students in foster care ................................................................. 46
5.2.3 Actual boarding charges ............................................................... 47
5.2.4 Full-time boarders ........................................................................ 47
5.2.5 Part-time boarders ........................................................................ 47
5.2.6 Short-term boarders ...................................................................... 48
5.3 Second Home Allowance ........................................................................... 49
5.3.1 Purpose ......................................................................................... 49
5.3.2 Eligibility ..................................................................................... 49
5.3.3 Approved second family home .................................................... 50
5.3.4 Parent temporarily employed in isolated area .............................. 50
5.3.5 Loss of a parent ............................................................................ 51
5.3.6 Eligibility where no parent normally lives at the principal
family home ................................................................................. 52
5.3.7 Pro-rata entitlement ...................................................................... 52
5.3.8 Maximum annual entitlement per family ..................................... 52
5.4 Distance Education allowances .................................................................. 53
5.4.1 Purpose ......................................................................................... 53
5.4.2 Eligibility ..................................................................................... 53
5.4.3 Acceptable study locations ........................................................... 53
5.4.4 Home tuition ................................................................................ 54
5.5 Pensioner Education Supplement ............................................................... 54
5.5.1 Purpose ......................................................................................... 54
5.5.2 Eligibility ..................................................................................... 54
5.6 Current AIC allowance rates ...................................................................... 56
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Contents — vii
5.6.1 Boarding allowances .................................................................... 56
5.6.2 Additional Boarding Allowance .................................................. 56
Threshold .................................................................................... 56
Maximum rate ............................................................................. 56
5.6.3 Second Home Allowance ............................................................. 57
5.6.4 Distance Education Allowances ................................................... 57
Distance Education Allowance .................................................................. 57
Distance Education Allowance Supplement .............................................. 57
5.6.5 Pensioner Education Supplement ................................................. 57
6 The Parental Income Test 59
6.1 Overview .................................................................................................... 59
6.1.1 Purpose and application ............................................................... 59
6.1.2 Tax year used for assessment ....................................................... 59
Normal assessment using previous tax year ............................... 59
Assessment using a different tax year ......................................... 59
6.1.3 Proof of income ............................................................................ 60
6.2 Whose income is taken into account? ........................................................ 61
6.2.1 Applicant and partner ................................................................... 61
6.2.2 Separated or divorced parents ...................................................... 61
6.2.3 Applicant’s new partner ............................................................... 61
6.2.4 Loss or change of applicant or partner during the year of
study ............................................................................................. 61
6.3 Calculating parental income ....................................................................... 63
6.3.1 Basic calculation .......................................................................... 63
6.3.2 Parental Income Free Area ........................................................... 63
6.3.3 Upper Income Limit ..................................................................... 64
6.3.4 Other dependent children or students ........................................... 64
Definitions ................................................................................... 64
Effect on Parental Income Free Area and Upper Income
Limit ............................................................................................ 64
Children and students who do not increase the Parental
Income Free Area and Upper Income Limit ............................... 64
Changes in the number of dependent children or students ......... 65
6.3.5 Maintenance payments ................................................................. 65
6.3.6 Textiles, Clothing and Footwear Special Allowance ................... 65
6.3.7 Treatment of negative income ...................................................... 65
6.3.8 Income averaging not permitted................................................... 65
6.3.9 Income earned or received from overseas .................................... 66
6.4 Negative gearing ........................................................................................ 66
6.4.1 Effect of negative gearing ............................................................ 66
6.4.2 Definitions .................................................................................... 67
Rental property ............................................................................ 67
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Contents — viii
Passive income earning investment ............................................ 67
6.4.3 Valuing losses from rental properties and/or
shares/investments........................................................................ 67
6.4.4 Self-declaration and compliance checks ...................................... 67
6.5 Fringe benefits ............................................................................................ 68
6.5.1 Definitions .................................................................................... 68
6.5.2 Types of benefits to be included .................................................. 68
6.5.3 Valuing fringe benefits ................................................................. 68
6.5.4 First $1,000 of reportable fringe benefits exempt ........................ 69
6.5.5 Overseas fringe benefits ............................................................... 69
6.5.6 Ministers of religion ..................................................................... 69
6.6 Current income assessment ........................................................................ 69
6.6.1 Assessment based on current tax year .......................................... 70
6.6.2 Current tax year assessment (fall in income) ............................... 70
Circumstances in which a current tax year assessment can
be approved ................................................................................. 70
Definition of substantial fall in income ....................................... 70
Duration of fall in income ........................................................... 71
Date of effect ............................................................................... 71
6.6.3 Estimated income ......................................................................... 72
6.6.4 Approval of estimated income ..................................................... 73
6.6.5 Reverse current income (increase in income) .............................. 73
6.7 Current AIC Scheme income limits ........................................................... 74
6.7.1 Parental Income Free Area ........................................................... 74
6.7.2 Upper Income Limit ..................................................................... 74
6.7.3 Effect of other dependent children or students ............................ 75
6.8 Waiver of the Parental Income Test ........................................................... 75
6.8.1 Reasons for waiver ....................................................................... 75
6.8.2 Special assessment ....................................................................... 75
Special assessment as a result of receipt of assistance ................ 76
Special assessment as result of receipt of certain health care
cards ............................................................................................ 76
Special assessment because student is in foster care .................................. 77
Special assessment where applicant is an organisation or institution ........ 77
6.8.3 Duration of special assessment .................................................... 77
6.8.4 Reassessment after special assessment lapses.............................. 77
7 Administrative information 79
7.1 The claim assessment process .................................................................... 79
7.1.1 Initial assessment ......................................................................... 79
7.1.2 When a claim can be lodged ........................................................ 79
7.1.3 Who can complete a claim ........................................................... 80
7.1.4 Tax file numbers and exemptions ................................................ 80
AIC Scheme: Policy Guidelines
Contents — ix
7.1.5 Supporting evidence required ...................................................... 81
7.1.6 Notice of assessment .................................................................... 82
7.2 Applicant’s rights and obligations .............................................................. 82
7.2.1 Obligations ................................................................................... 82
Supply correct information ......................................................... 82
Notify prescribed events ............................................................. 82
Repay money ............................................................................... 84
7.2.2 Rights to privacy and confidentiality ........................................... 84
Privacy......................................................................................... 84
Confidentiality ............................................................................ 85
7.2.3 Use of information by government .............................................. 85
Compliance investigations .......................................................... 85
Data-matching program .............................................................. 85
Freedom of information requests ................................................ 86
7.3 Reviews and appeals .................................................................................. 87
7.3.1 Assessments, reassessments and reviews ..................................... 87
Assessments ................................................................................ 87
Reassessments ............................................................................. 87
Applicant’s right of review ......................................................... 87
Internal review of assessment decisions ..................................... 87
7.3.2 Appeals about assessments of eligibility and/or
entitlement .................................................................................... 88
Appeals to the Minister ............................................................... 88
Appeals to the Social Security Appeals Tribunal and the
Administrative Appeals Tribunal ................................................ 88
7.3.3 Recovery of debt .......................................................................... 88
Government’s right to recover debt ............................................ 88
Types of debt recovery decisions ................................................ 89
Debt recovery after an unsuccessful appeal ................................ 89
Internal review of debt recovery decisions ................................. 89
Appeals to the Social Security Appeals Tribunal and the
Administrative Appeals Tribunal about debt recovery ............... 89
Appeals to the Federal Court about debt recovery ...................... 90
Waiver of the right to recover a debt .......................................... 90
7.4 Roles and responsibilities for administration of the scheme ...................... 91
Appendix A: Changes to the AIC Scheme Guidelines 92
AIC Scheme: Policy Guidelines
Abbreviations and acronyms — x
Abbreviations and acronyms
AAT Administrative Appeals Tribunal
AIC (Scheme) Assistance for Isolated Children Scheme
CEO Chief Executive Officer
CDEP Community Development Employment Projects
DEEWR Department of Education, Employment and Workplace
Relations
ESL English as a Second Language
FBT Fringe Benefits Tax
IPP Information Privacy Principle
NSA Newstart Allowance
PES Pensioner Education Supplement
PIFA Parental Income Free Area
PIT Parental Income Test
PPS Parenting Payment (Single)
SSAT Social Security Appeals Tribunal
TAFE Institute of Technical and Further Education
TFN Tax File Number
AIC Scheme: Policy Guidelines
Definitions for these Guidelines — xi
Definitions for these Guidelines
In these guidelines, the following definitions apply.
Act, the Unless otherwise specified, the Student Assistance Act 1973.
Appropriate state
school
A state school that offers tuition at the student’s level (i.e. the
year or grade for which the student is qualified to enrol).
If a student has a disability or other health-related condition
or a special education need that requires a special school
program, special facilities and/or a special environment, an
appropriate state school will be one that has or can provide
them with access.
Depending on a student’s enrolment, a ‘selective’ or specialist
school can be an appropriate state school.
Approved applicant Either a person who:
• meets the definition set out in 2.1
• meets the residency requirements set out in 2.2
and
• is not receiving other Australian Government assistance
detailed in 3.5.3
or
an organisation that meets the definition in 2.1.5.
Australia Includes Australia’s external territories, such as Christmas
Island, Norfolk Island and Cocos (Keeling) Islands.
Base tax year The tax year that ends in the previous year of study i.e. if
seeking benefits for 2008, the base tax year is the 2006–07
financial year.
Centrelink An Australian Government statutory agency that delivers a
range of Commonwealth services to the Australian
community (established under the Commonwealth Service
Delivery Agency Act 1997). Centrelink processes AIC Scheme
claims and payments.
Centrelink AIC
Processing Centre
The Centrelink organisational unit responsible for assessing
and processing claims and benefits.
AIC Scheme: Policy Guidelines
Definitions for these Guidelines — xii
Circumstances beyond
the family’s control
Matters (detailed in 4.2) that prevent a student from accessing
their local school for at least 20 school days a year, such as
the death or illness of a member of the student’s family, or
impassable roads.
Does not include a vacation taken by the student during term,
with or without the family.
See also Unforeseen circumstances.
Claim The application needed to assess eligibility for payments
under the AIC Scheme, including end-of-year reviews of
eligibility.
Current tax year The tax year ending in the same year that benefits are sought
(i.e. if seeking benefits for 2008, the current tax year is
2007-08 financial year).
Custody Unless otherwise specified, custody as defined in parenting
orders (formal documents lodged with the court, setting out
parenting arrangements and including such matters as contact
and residence agreements).
Decision maker A Centrelink officer who is authorised to make an initial
decision of eligibility for an AIC allowance.
Disability or other
health-related
condition
Any of the following:
• a physical or intellectual disability
• a psychological, emotional or behavioural problem
• a medical condition
• pregnancy.
Distance education
methods
Methods of tuition that do not use face-to-face interactions
between students and teachers (e.g. tuition by correspondence,
web-based delivery or ‘schools of the air’).
Education authority An authority at state or territory level that is responsible for
managing schools, teachers and curriculum within the state or
non-government school system. The education authority for
state schools is the relevant state or territory government
education department. The education authority for
non-government schools is dependent on the school, but is
generally the state or territory Association of Independent
Schools or Catholic Education Office.
Eligibility period The period for which an approved applicant is eligible to
receive assistance for the student.
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Definitions for these Guidelines — xiii
Eligible student A person who:
• meets the general eligibility conditions set out in Part 3
• meets (or is deemed to meet) one of the conditions for
geographical isolation set out in Part 4
and
• qualifies for an allowance (see Part 5) because they either
board away from home, live in a second family home or
study by distance education methods.
Family A family unit comprising a parent or parents and their
dependent natural or adopted children. A person within the
family is taken to mean a person who is related by blood or
who stands in a bona fide domestic or household relationship.
Full-time boarder A student who boards away from their principal family home
at least four nights per school week.
Likely More than a remote possibility.
Minister The responsible Australian Government Minister, who is
currently the Minister for Education, Employment and
Workplace Relations.
Non-Parent Any person who does not meet the definition of parent.
Parent As defined in the Student Assistance Regulations 2003, either:
• a natural or adoptive parent with whom the student
normally lives
• if the student normally lives with a partner of the student’s
parent, that partner
• a legal guardian
or
• any other adult who:
– has primary or joint responsibility for the student
– does not live at a boarding institution.
AIC Scheme: Policy Guidelines
Definitions for these Guidelines — xiv
Partner As defined in the Student Assistance Regulations 2003, a
person who is:
• married to or living in a de facto relationship with the
student’s parent
and
• not separated from the parent
Part-time boarder A student who boards away from their principal family home
for fewer than four nights per school week on a regular basis.
Permanently settled Having a bona fide intention to remain permanently settled in
Australia. To determine whether a person is permanently
settled, the AIC Scheme takes all of the following into
account:
• the nature of the accommodation they use in Australia
• the nature and extent of their family relationships here
• the nature and extent of their employment, business or
financial ties with Australia
• the nature and extent of their assets here
• the frequency and duration of their travel outside
Australia
• any other relevant matter.
Principal family home The usual place of residence of the family for the entire
eligibility period, where:
• the student normally lives, or would normally live but for
the need to live away to attend school
• the student and the family normally live during school
holidays
and
• the applicant and/or the applicant’s partner live for more
than half the calendar year (or, if the eligibility period is
less than a calendar year, for more than half of the claimed
period).
The residence must be:
• in Australia
• the principal residence of the applicant (including a home
currently occupied by them in the course of their
employment)
and
• able to adequately accommodate the student and the
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Definitions for these Guidelines — xv
student’s family (i.e. parents and dependent children).
Review officer An officer authorised to review decisions made by a decision
maker. This officer must not have been involved in the
original AIC Scheme eligibility decision. A review officer
may also be known as an ‘authorised review officer’.
School year The period that starts on the first day of the year, in which a
student is required by the school to attend the course and ends
on the last day in that year of compulsory attendance at the
institution or the day in that year of the student’s last exam,
whichever is the later.
For students studying by distance education methods, the
school year starts on the first day of Term 1 and ends on the
last day of the final term for the year. This may be varied with
the agreement of the distance education institution, provided
the student can still complete the course satisfactorily.
Second family home A home maintained by the family for the purpose of
providing daily access to appropriate education for at least
one dependent student who would not normally have such
access from the principal family home.
Short-term boarder Short-term boarders are students who need access to a school,
special program, special facilities or a special environment for
one or a series of short periods. ‘Access’ includes short-term
accommodation at or near the facility.
Special assessment Waiver of the Parental Income Test (an assessment of income
that would not normally be performed for a particular tax
year).
Special institution An institution that:
• specifically and primarily caters for students with
disabilities, health-related conditions and/or learning
difficulties
• is recognised by Australian Government or state/territory
health or education authorities
and
• has residential facilities.
Special school An institution that:
• specifically cater for students with disabilities,
health-related conditions and/or learning difficulties
and
• is recognised as a school by Australian Government or
state/territory education authorities.
State-authorised care The care arrangements for a student who has been placed in
substitute care through a state/territory welfare authority or
AIC Scheme: Policy Guidelines
Definitions for these Guidelines — xvi
through a legal process.
Student A person undertaking a course at the primary, secondary,
tertiary or ungraded level.
Unforeseen
circumstances
Matters that delay the commencement or resumption of
studies, such as:
participation in a sporting or cultural event (for which
the student was selected as a school, state or territory,
or national representative)
and/or
sudden onset of illness or an accident; or disruption to
international travel.
Unforeseen circumstances do not affect continuing eligibility.
See also Circumstances beyond the family’s control.
AIC Scheme: Policy Guidelines
General information — 1
1 General information about the AIC Scheme
This section includes:
• 1.1 Description of the scheme
• 1.2 Objectives
• 1.3 Eligibility
• 1.4 Types of allowances
• 1.5 Legislative basis.
1.1 Description
The Assistance for Isolated Children (AIC) Scheme helps the families of primary,
secondary, and certain tertiary students who cannot attend an appropriate state school on
a daily basis because of geographical isolation. An appropriate state school is one that
offers tuition at the year or grade for which the student is qualified to enrol.
If a student has a disability or other health-related condition or a special education need
that requires a special school program, facilities or environment, an appropriate state
school will be one that can provide access to those things.
The Australian Government Department of Education, Employment and Workplace
Relations is responsible for AIC Scheme policy. Centrelink conducts assessments,
processes claims and makes payments under the DEEWR–Centrelink Business
Partnership Agreement.
1.2 Objectives
The aim of the AIC Scheme is to assist Australian children without reasonable daily
access to an appropriate state school. Families in isolated areas incur additional costs to
educate their children. The AIC Scheme provides financial assistance in the form of
allowances to alleviate such costs.
The scheme is not intended to help families where an appropriate state school is
accessible. However, if a student does not have reasonable daily access to an
appropriate state school, their family is free to send them to a school of their choosing.
1.3 Eligibility
Applicants who meet the requirements of the AIC Scheme are ‘approved’ applicants.
Approved applicants (who are usually parents but can be parents’ partners,
organisations or institutions) may receive AIC allowances for eligible students.
An AIC allowance is payable if:
• the approved applicant meets the eligibility conditions in Part 2
AIC Scheme: Policy Guidelines
General information — 2
• the student meets the eligibility conditions in Part 3
• the student meets isolation conditions or has special needs identified in Part 4;
and
• the student boards away from home, lives in a second family home or studies by
distance education methods (see Part 5).
1.4 Types of allowances
Depending on the student’s circumstances, the AIC Scheme provides:
• Basic Boarding Allowance (see 5.2.1)
• Additional Boarding Allowance (see 5.2.2)
• Second Home Allowance (see 5.3)
• Distance Education Allowance (see 5.4)
• Pensioner Education Supplement (see 5.5).
With the exception of the Additional Boarding Allowance, all allowances are free of
means testing.
1.5 Legislative basis
The AIC Scheme is a current special educational assistance scheme, as defined by the
Student Assistance Act 1973 (the Act). Funding for the scheme is appropriated under
section 55A of the Act. Parts 6 and 7 of the Act detail such matters as the recovery of
overpayments, various obligations of applicants, and penalties for non-compliance.
Policy and procedures of the AIC Scheme that are not are set out in the Act are set out
in these guidelines.
AIC Scheme: Policy Guidelines
Applicant eligibility — 3
2 Applicant eligibility
2.1 Requirements for applicants
This section explains who can apply for AIC allowances on behalf of a student, and the
eligibility criteria the applicant must meet for allowances to be payable.
While any person may apply, assistance is only payable to approved applicants (who
may be people, institutions or organisations). In this section, unless otherwise stated,
‘applicant’ means ‘approved applicant’.
• 2.1.1 Applicants who can be approved
• 2.1.2 Applicants who cannot be approved
• 2.1.3 Parents as applicants
• 2.1.4 Non-parents as applicants
• 2.1.5 Organisations or institutions as applicants
• 2.1.6 Claims received from a parent and from an organisation
• 2.1.7 Only one claim per student may be accepted
• 2.1.8 New claim required when applicant changes.
2.1.1 Applicants who can be approved
To be eligible for assistance, an applicant must:
• meet the eligibility criteria set out in 2.2
and
• not be receiving certain other Australian Government assistance (see 3.5).
The applicant must have prime (or joint) responsibility for the student’s care and
support, and be either:
• a person having legal guardianship of the student
• a natural, adoptive, de facto or step parent of the student
• a person with whom the student normally lives (when not living away to attend
school)
or
• in certain circumstances, a third party, an organisation or an institution (see 2.1.5).
2.1.2 Applicants who cannot be approved
The applicant cannot be either:
• the student
• the student’s partner (married or de facto)
or
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Applicant eligibility — 4
• a person who is in a prison, correctional centre (including detention, remand and
training centres) or psychiatric institution.
2.1.3 Parents as applicants
Student lives with both parents
If a student normally lives with both parents, who are not separated or divorced, either
parent may be the applicant.
Student lives with one parent
Where the student’s parents are separated or divorced and the student normally lives
with one of them, that parent is the applicant. In addition, where the student normally
lives with the parent and the parent’s partner (regardless of the duration of their
relationship), the student is taken to be in the care of that partner. In such circumstances,
either the parent or the partner can be the applicant.
Student lives with each parent separately
If the student’s parents are separated or divorced and the student lives at different times
with each parent, the following factors are taken into account to determine who the
applicant can be:
• Where one parent is officially recognised as having primary care of the student (e.g.
through the grant of custody to that parent, removal of custody from the other
parent, or receives a majority allocation of Family Tax Benefit), that parent is the
applicant
or
• Where there is no such recognition of the primary carer, other evidence (outlined
below, under Disputes over which parent should apply) must be considered.
Equal custody situations
If parents share equal care of the student (i.e. the student spends an equal amount of
time living with each parent and the turnaround of care of the student is
frequent - weekly, fortnightly or monthly), the applicant can be either parent, or a
parent’s partner where the student lives with the parent and the partner.
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Applicant eligibility — 5
Disputes over which parent should apply
Where there is no legal recognition of a primary carer or a dispute over which parent
may apply for an AIC allowance exists, the following factors (not in order of priority)
must be considered to determine which parent may be an approved applicant (and be
eligible for AIC allowances):
• whether the student normally lives with the parent and has done so for the past
12 months
• whether the student lives with the parent during vacations
• who has principal financial responsibility for the care of the student (e.g. food,
shelter etc.)
• who contributes regularly and significantly to the student’s living and education
costs (this should not be limited to boarding costs)
and/or
• who holds a Medicare card or receives other allowances/benefits for the student.
2.1.4 Non-parents as applicants
If a claim is lodged by a person other than a parent or parent’s partner, the case will be
considered on its merits, and will need to be supported by evidence that:
• the non-parent has prime (or joint) responsibility for the student’s care
• the non-parent supports the student wholly or substantially
and
• the arrangement is bona fide.
A student is not wholly or substantially dependent on a non-parent if the student’s
parent (or parent’s partner) is:
• supporting the student in the non-parent’s home
or
• providing financial assistance, directly or indirectly, to the non-parent to support the
student.
If a student has been placed in the care of a foster parent by welfare authorities, the
foster parent is the applicant. In such cases, the student’s principal family home is the
foster parent’s home.
2.1.5 Organisations or institutions as applicants
An organisation or institution (referred to here as an organisation) can be an applicant
only where it is clear that the organisation cares for the student without any contribution
from a parent. Where a student and one or more parents live with an organisation, the
parent is the applicant (and the organisation’s premises are considered the student’s
home).
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Applicant eligibility — 6
To be an applicant, an organisation must be a non-government body, must not be
receiving a foster care or similar allowance for the student, and must have full
responsibility for the upkeep of the student (‘full responsibility’ is defined below).
The claim must be signed by the organisation’s chief officer or another officer with the
power to act on behalf of the organisation (e.g. the principal, manager, executive officer
or director). By signing the claim, the officer accepts the obligations set out in 7.2.1 on
behalf of the organisation.
Where an organisation is an applicant, the income test for Additional Boarding
Allowance is waived (see Part 6).
Organisations may also be nominated by applicants as agents to receive allowance
payments on the applicant’s behalf (see 5.1.6).
Definition of ‘full responsibility’ for a student
If the student has been formally placed in the care of the organisation by a state/territory
authority or a court, the organisation is considered to have full responsibility for the
student.
In other cases, the organisation must clearly show that the student’s parents are not
involved in decisions about the care of the student, that they do not provide financial
support for the student, and that either:
• unsuccessful attempts have been made to locate the parents
or
• the parents have been asked to complete a claim for the student but have been
unwilling to do so (i.e. they have refused to accept responsibility for supporting the
student).
Note: Some parents need help to complete the claim. However, where a parent makes
decisions about the student’s care (such as enrolling them in a particular institution) or
contributes to the student’s upkeep (even if only to the extent of AIC allowance
entitlement), the parent and not the organisation should be the applicant.
2.1.6 Claims received from a parent and from an organisation
If a parent and an organisation both apply for the same student, evidence will need to
show whether the parent or the organisation has primary responsibility for the student.
The following factors may be used to decide the approved applicant:
• If the parent directs the AIC allowance payment to the organisation where the
student normally lives, this indicates that the parent is contributing to the student’s
financial upkeep, and the parent is the applicant
or
• If the parent does not direct the AIC allowance payment to the organisation, the
parent should be asked to comment on the claim that they do not support the student
(particularly financially). If they cannot demonstrate such support, the organisation
may be the applicant.
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Applicant eligibility — 7
2.1.7 Only one claim per student may be accepted
While there may be more than one approved applicant for a student, only one claim can
be accepted for the student for a particular period.
2.1.8 New claim required when applicant changes
If the approved applicant changes, a new claim is required.
2.2 Residency requirements for applicants
This section outlines the residency requirements for applicants.
• 2.2.1 Australian citizenship or permanent residency
• 2.2.2 New Zealand citizenship and permanent settlement in Australia
• 2.2.3 Applicant must normally live in Australia.
2.2.1 Australian citizenship or permanent residency
An applicant must normally live in Australia (see 2.2.3) and be either:
• an Australian citizen
• an Australian permanent resident within the meaning of regulation 1.03 of the
Migration Regulations 1994
or
• a New Zealand citizen who meets the permanent settlement rule set out in 2.2.2.
An applicant who is not an Australian citizen must provide evidence to support their
claim of permanent residency or settlement.
2.2.2 New Zealand citizenship and permanent settlement in Australia
An applicant who is a New Zealand citizen can be eligible if they are permanently
settled in Australia and have lived either:
• continuously in Australia for six months or more
• in Australia for the past 12 months, with no more than two months absence in that
period
or
• in Australia for the past 12 months, with more than two months absence, but can
demonstrate continuity of residence in Australia in that period.
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Applicant eligibility — 8
An applicant with a partner or dependent children living in New Zealand should not
normally be considered permanently settled in Australia, unless:
• they can show that the family will be moving to Australia within six months
or
• they are permanently estranged from their former partner or children.
2.2.3 Applicant must normally live in Australia
The applicant must normally live in Australia during the school year for which benefits
are sought. However, an applicant living overseas can receive benefits for an eligible
student who is studying in Australia, provided:
• the applicant is an Australian citizen or permanent resident as defined in 2.2.1
• the applicant normally lives full-time in Australia
and
• there is evidence their absence is temporary (e.g. for work or holiday purposes) and
that they will be returning to Australia within two years.
The principal family home must also be in Australia and must continue to meet an
isolation condition, where applicable (see Part 4).
2.3 Death of applicant
This section outlines the process for dealing with the death of an approved applicant.
• 2.3.1 Where there is more than one applicant
• 2.3.2 Where there is only one applicant
• 2.3.3 Payments around the date of death.
2.3.1 Where there is more than one applicant
If the student lives with more than one possible applicant (e.g. with both parents) and
the one who applied for benefits dies, the other is entitled to receive remaining
entitlements for the year. However, they will need to lodge a new claim.
2.3.2 Where there is only one applicant
If the student lives with only one applicant (e.g. a sole parent) and the applicant dies, the
continuing eligibility of the student and the payment of benefits for the rest of the year
will depend on who now has responsibility for the student and what now constitutes the
principal family home. The continuity of schooling concession (see 4.4.5) may apply in
such cases.
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Applicant eligibility — 9
2.3.3 Payments around the date of death
In the circumstances described in 2.3.1 and 2.3.2:
• If the approved applicant dies after receiving a term instalment in advance, that
instalment stands as the correct payment for the term. Any entitlement due to a
person who then assumes responsibility for the student commences at the beginning
of the following term.
• If the approved applicant dies after receiving a fortnightly in arrears payment, the
payment made immediately (i.e. up to 14 days) after the applicant’s death stands as
the correct payment. Any entitlement due to a person who then assumes
responsibility for the student commences at the beginning of the pay period
immediately following the death.
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Student eligibility — 11
3 Student eligibility
3.1 Overview of student eligibility
For AIC allowances to be payable for a student, the student must:
• be an Australian citizen or permanent resident who lives in Australia during the
school year (see 3.2)
• meet the age criteria (see 3.3)
• be undertaking approved studies (see 3.4)
• not be receiving certain other Australian Government assistance (see 3.5)
and
• not be in a custodial institution or certain state-authorised care situations (see 3.6).
The student must also meet one of the isolation conditions (Part 4) and qualify for an
allowance (Part 5).
Rules for the student’s period of eligibility are set down in 3.7.
3.2 Residency requirements for students
This section outlines the citizenship and residency requirements for students.
• 3.2.1 Australian citizenship or permanent residency
• 3.2.2 New Zealand citizenship and permanent settlement
• 3.2.3 Student must live in Australia during the period of study
• 3.2.4 International student exchange.
3.2.1 Australian citizenship or permanent residency
To be eligible for assistance a student must live in Australia during the period of study
(see 3.2.3) and be either:
• an Australian citizen
• an Australian permanent resident within the meaning of regulation 1.03 of the
Migration Regulations 1994
or
• a New Zealand citizen who meets the permanent settlement rule set out in 3.2.2.
Where the student is not an Australian citizen, evidence must be provided to support the
claim of permanent residency or settlement.
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Student eligibility — 12
3.2.2 New Zealand citizenship and permanent settlement in Australia
A student who is a New Zealand citizen can be eligible for AIC allowances if they are
permanently settled in Australia and have lived either:
• continuously in Australia for six months or more
• in Australia for the past 12 months, with no more than two months absence in that
period
or
• in Australia for the past 12 months, with more than two months absence, but can
demonstrate continuity of residence in Australia in that period.
3.2.3 Student must live in Australia during the period of study
To be eligible for assistance, the student must be living in Australia during the period of
study, except where they are participating in a student exchange as described in 3.2.4.
3.2.4 International student exchange
Applicants can continue receiving AIC allowances for a student who is participating in
an international student exchange if:
• the student remains enrolled at an Australian education institution and the overseas
study is credited to their Australian studies (however, if a student is paid
AIC allowances while studying overseas but then needs to repeat all or part of that
study in Australia, allowances are not payable for the period of overseas study that
does not count towards their Australian studies)
• the student is continuing to incur the costs in Australia for which the allowance is
being paid (e.g. if the Australian boarding school is still charging full boarding fees
while the student is on exchange);
and
• the student continues to meet all other eligibility criteria.
3.3 Age limits
This section outlines the age limits for student eligibility.
• 3.3.1 Age limits
• 3.3.2 Extension to age limits in special circumstances.
3.3.1 Age limits
AIC allowances can only be paid for students who either:
• have reached the minimum primary school entry age for their state or territory,
and are either:
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Student eligibility — 13
• primary, secondary or ungraded level students (see 3.4.4) under 19 years of age
on 1 January of the year of study
• tertiary level students (see 3.4.4) and under either the minimum age at which the
state or territory requires them to participate in education or 16 years of age,
whichever is the greater (this may apply, for example, to some TAFE students)
or
• receive a concession to the above age limits under Section 3.3.2.
The first year of primary schooling is known by various names in different states (see
Table 1), but must always be a five day per week or full-time program (see 3.4.1).
Table 1 The structure of Australian schooling
School year level
NSW VIC TAS ACT NTa NT
a SA WA QLD
12
Secondary Secondary
11
10
9
8
7
Primary
6
Primary
5
4
3
2
1
Pre-Year 1
Kin
derg
art
en
Pre
para
tory
Pre
para
tory
Kin
derg
art
en
Tra
nsitio
n
Tra
nsitio
n
Reception
Pre
-prim
ary
Pre
para
tory
a For historical reasons, schools in the northern and southern parts of the Northern Territory use two different structures.
AIC allowances are normally not payable for children before they enter one of the
programs listed in Table 1. That is, allowances are not payable for children attending
institutions outside the mainstream primary system, such as pre-schools (a term
commonly used in New South Wales, Queensland, South Australia, the Northern
Territory and the Australian Capital Territory), kindergartens (a term used in Victoria,
Queensland, Western Australia, South Australia and Tasmania), crèches and other child
care centres.
If the child is not yet five years old, the student must either attend a primary school
(rather than a child care centre) or be eligible for a concession under 3.3.2.
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Student eligibility — 14
3.3.2 Extension to age limits in special circumstances
Extension to minimum age
A child may be eligible for an allowance from the age of three years and six months if
they have a disability or other health-related condition that requires them to live away
from the principal family home (see 4.3).
Extension to maximum age
The maximum age limit for primary, secondary and ungraded level students may be
extended by either:
• one year (i.e. the student must be under 20 years of age at 1 January in the year of
study) if the student’s progress through school has been delayed by special
circumstances (such as illness, English language difficulties, transfer from a
different education system or periods of employment or training)
or
• until they turn 21 (see 5.5) if a student who receives a Disability Support Pension or
Parenting Payment (Single) and is studying full-time at primary or equivalent
ungraded level (see 3.4.4). They may receive the Pensioner Education Supplement
under the AIC Scheme.
3.4 Approved studies
This section outlines the level, load and type of approved studies. To be eligible, a
student must be enrolled in and undertaking a full-time study load, offered by an
approved institution, in an approved course, at an approved level of study.
• 3.4.1 Full-time study load
• 3.4.2 Approved institution
• 3.4.3 Approved course
• 3.4.4 Approved level of study
• 3.4.5 Effect of previous studies on AIC allowance eligibility.
3.4.1 Full-time study load
A full-time study load is the amount of work the school, institution or (for home
schooling) education authority regards as a full-time amount for the student.
Where a school allows a student with a disability or other health-related condition to
undertake a reduced study load (less than that required of other students at the same
level), that reduced load is also considered to be full-time (see Example 14 under 4.3.5.
If a student’s right to attend a school has been temporarily withdrawn because of
disciplinary problems, they will be deemed to be carrying the same study load as they
would have if they were able to attend school. However, if a student’s conduct results in
cessation of enrolment at the school they were attending, they will be deemed to have
ceased studies from the date that their enrolment ceased.
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Student eligibility — 15
3.4.2 Approved institution
An approved institution is an institution in Australia (excluding Norfolk Island) of one
of the following types:
(a) a state school, including a distance education centre
(b) a non-state school that is not conducted for profit and is recognised by the
state/territory Minister responsible for education (recognition may take the form
of registration or certification, the payment of government capital or recurrent
grants to the school, or the payment of state/territory government allowances or
bursaries to its students)
(c) a technical and further education (TAFE), vocational and technical education
(VTE) institution or higher education institution (as defined in the Act)
(d) a government residential institution or non-residential special school that caters
for children with disabilities or psychological, emotional or behavioural
problems
(e) a non-government residential institution or non-residential special school that
caters for children with disabilities or psychological, emotional or behavioural
problems, provided that it is accredited for such purposes by Australian
Government or state/territory health or education authorities
(f) a non-government (private) tertiary institution that offers a course accredited by
the relevant state/territory government authority, and meets the requirements for
the Determination of Educational Institutions and Courses approved by the
Minister under section 5D of the Act.
Students undertaking a course described in 3.4.3(e) may be deemed to be enrolled in an
approved institution.
3.4.3 Approved course
An approved course is either:
(a) a full-time primary or secondary level course (see 3.4.4) involving daily
attendance at an approved institution
(b) a full-time primary or secondary level distance education course offered by an
approved institution of type 3.4.2(a) or type 3.4.2(b), provided that the course is
accepted by the state/territory education authority as a satisfactory alternative to
full-time daily attendance at school
(c) a full-time primary or secondary level course of home tuition that has been
approved formally by the state/territory education authority as being a
satisfactory alternative to a state-provided education
(d) any other full-time secondary course at an approved institution, that is
recognised under the Determination of Educational Institutions and Courses
made by the Minister under section 3(1) and 5D(1) of the Act
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Student eligibility — 16
(e) a full-time tertiary course offered by an approved institution (see 3.4.2(c) or (f)),
that is recognised under the Determination of Educational Institutions and
Courses made by the Minister under section 3(1) and 5D(1) of the Act
or
(f) in the case of a student at an approved institution specified in 3.4.2(d) or (e), any
form of approved full-time study below tertiary level (including ungraded
studies).
3.4.4 Approved level of study
An approved level of study is primary, secondary, tertiary or ungraded level:
• primary level study is study in an approved course at a level that is recognised by
the state/territory education authority as primary level
• secondary level study is study in an approved course of the type at 3.4.3(d) or in an
approved course that is recognised by the state/territory education authority as
secondary level
• tertiary level study is study in an approved course of the type at 3.4.3(e) or in an
approved course that is recognised by the authority responsible for accrediting
higher education courses or the authority responsible for accrediting vocational
education and training courses in the state or territory in which the course is
conducted
• ungraded level study is study in an approved course at an institution described in
3.4.2(d) or 3.4.2(e) that is recognised as ungraded (including ‘living skills’) by the
state/territory education or health authority.
Students studying concurrently at a senior secondary institution and a TAFE are
considered to be secondary students for the AIC Scheme.
3.4.5 Effect of previous studies on AIC allowance eligibility
A student’s previous study at primary, secondary or tertiary (including TAFE/VTE)
level does not affect their eligibility.
3.5 Effect of other Australian Government payments on eligibility
A student’s receipt of other Australian Government assistance can affect their
eligibility. This section outlines such effects.
• 3.5.1 Payments that do not exclude eligibility
• 3.5.2 Payments that affect the level of entitlement
• 3.5.3 Payments that exclude eligibility.
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Student eligibility — 17
3.5.1 Payments that do not exclude eligibility
A family receiving AIC allowances (except the Pensioner Education Supplement) for a
student can also receive Family Tax Benefit, Carer Allowance or Double Orphan
Pension.
Students who receive the Disability Support Pension or Parenting Payment (Single) can
also receive the Pensioner Education Supplement (see 5.5).
State or territory education and training assistance does not affect eligibility. Most state
and territory governments also provide assistance to isolated students, and some tie that
assistance to eligibility for the AIC Scheme. Eligibility for the Scheme is not affected
by receipt of such assistance.
3.5.2 Payments that affect the level of entitlement
Certain receipts of Australian Government payments (detailed in Section 6.4.2) may
automatically entitle an applicant to receive AIC Additional Boarding Allowance.
If an applicant is a foster carer applying on behalf of a student in an official foster care
arrangement and receiving a state/territory foster care or similar allowance, they may
qualify for the Basic Boarding Allowance. They may also qualify for the Additional
Boarding Allowance only if they are not receiving a foster care or similar allowance
from a state/territory government authority (see 5.2.2).
3.5.3 Payments that exclude eligibility
AIC allowances are not payable for a student if they are receiving other Australian
Government education or training assistance, income support, other similar payments,
or if another person (such as a parent) is receiving it on their behalf. Such assistance
includes, but is not limited to:
• Youth Allowance
• ABSTUDY
• New Apprenticeships
• Rehabilitation Training Scheme Awards
• Veterans’ Children Education Scheme
• Department of Defence Special Education Assistance (for staff at Woomera and
Exmouth)
• Exceptional Circumstances Relief Payment
• Interim Income Support
• Community Development Employment Projects (CDEP).
Eligibility for specific AIC allowances may also be affected where an applicant or
partner receives other Australian Government assistance to enable them to purchase the
same service or item. For example, the AIC Second Home Allowance is not payable for
a home for which rent assistance is provided by the Australian Government (see 5.3.3).
AIC Scheme: Policy Guidelines
Student eligibility — 18
Choice between the AIC Scheme, Youth Allowance or ABSTUDY
Certain students may be in a position where they meet eligibility requirements for
Youth Allowance, ABSTUDY or the AIC Scheme concurrently. In these instances,
students and their families cannot receive more than one of these payments for the same
period for the same student.
If a student is eligible for Youth Allowance, ABSTUDY or AIC allowances (with or
without Family Tax Benefit) at the same time, the applicant and student should choose
the payment or program that best meets their needs.
3.6 Students in lawful custody or state-authorised care
AIC allowances are not payable for a student who is in a custodial institution (such as a
prison, remand centre or training school) for the period of their custody.
Allowances are not payable for a student who is in state-authorised care and whose
permanent accommodation is financed wholly or substantially by a state or territory
government. However, allowances may be payable for a student in the state-authorised
care of a foster parent (see 2.1.4).
For claims by organisations responsible for the foster care of students, see 2.1.5. For
details of the applicable level of Boarding Allowance in such cases, see 5.2.1 and 5.2.2.
3.7 Eligibility period
This section outlines the eligibility period for a student under the AIC Scheme.
• 3.7.1 Eligibility commencement dates
• 3.7.2 Eligibility for vacations
• 3.7.3 Cessation of eligibility.
3.7.1 Eligibility commencement dates
Eligibility commencement dates vary according to whether the student is a short-term
boarder and the date they begin studies.
Short-term boarders
Provided all other eligibility criteria are met, short-term boarders are eligible from the
day they begin boarding until the day they cease to board.
AIC Scheme: Policy Guidelines
Student eligibility — 19
Other boarders commencing on 1 January
Except in the case of short-term boarders, student eligibility will normally begin on
1 January, provided that:
• the student begins the approved course no later than the 14th day from the start of
the school year
• for students living away from home, the student begins living at the boarding
accommodation or the second home no later than 14 days after the start of the
school year
and
• all other necessary AIC Scheme eligibility conditions are met on that date.
Other boarders commencing after 1 January
Except in the case of short-term boarders, eligibility for students who are not eligible
from 1 January normally begins on either:
• the first day of the relevant term or semester, if the student is otherwise eligible on
that date and begins the approved course by no later than the 14th day after the start
of the term or semester
or
• where this is not the case and no extenuating circumstances exist, the latest of either:
– the first day the student begins living away from home (if the student is boarding
or living in a second home)
– the first day the student begins studying full-time
or
– the first day the student otherwise becomes eligible for an AIC allowance.
Concession for late start
Eligibility for a student who starts studying and/or living away late (as defined above),
may be backdated to 1 January or the beginning of the relevant term (as applicable), if
the student:
• was prevented from beginning or resuming study and/or living away from home on
time because of unforeseen circumstances
and
• started studying and/or living away from home as soon as possible after those
circumstances ceased.
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Student eligibility — 20
3.7.2 Eligibility for vacations
Except for short-term boarders (see 3.7.1), once a student’s eligibility has begun, their
eligibility for vacations during the year is determined as follows:
• The student may receive benefits for the vacation period if they resume study no
later than the 14th day of the following term, or if they were prevented from doing
so because of unforeseen circumstances.
• The student will not be eligible for the vacation period if they resume study after the
14th day of the following term, due to circumstances within the family’s control.
Where the student resumes study on time but the allowance type for which the student
qualifies has changed, the allowance type payable on resumption of studies is payable
for the vacation period.
3.7.3 Usual date for cessation of eligibility
Except for short-term boarders (see 3.7.1), the date on which eligibility ceases is
determined as follows:
• If the student continues to the end of the school year, they are entitled to payment
until 31 December of that year.
• If the student discontinues before the end of the school year, their eligibility ceases
on the day they discontinue full time study.
If a student for whom payment is made
in advance by term instalments (see
5.1.4), discontinues on the last day of a
term other than the final term, and that
day precedes the end of the
corresponding instalment period, the
student’s entitlement continues until the end of the instalment period (see 5.1.4).
3.8 Death of student
If an eligible student dies before a payment has been made, their entitlement should be
calculated in accordance with the provisions of 3.7 to the date of that student’s death.
If an approved applicant receives an advance payment for a period (e.g. a term
instalment) for a student who subsequently dies, that instalment stands as the correct
payment for the period. No attempt should be made to recover any part of the payment
from the applicant.
If an applicant receives a fortnight in arrears payment for a student who subsequently
dies, the payment made within 14 days after the student’s death stands as the correct
payment due to the applicant.
Example 1: Discontinuation on last day of school year
Harold discontinues at his boarding school in Victoria on the last day of third term on 18 September. He is entitled to benefits until 30 September (the last day of the third term instalment period).
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Isolation conditions — 21
4 Isolation conditions and special needs
AIC allowances are intended for the families of students who do not have reasonable
daily access to an appropriate state school. This may be because of geographical
isolation or because of the student’s special needs.
Section 4.1 gives basic definitions. Section 4.2 describes the rules for determining
geographical isolation. Section 4.3 covers special needs, while Section 4.4 describes
lack of access for reasons other than geographical isolation.
4.1 Summary and definitions
This section summarises and defines basic factors used to assess the student’s access to
education.
• 4.1.1 Reasonable daily access
• 4.1.2 Nearest appropriate state school
• 4.1.3 Limited program schools.
4.1.1 Reasonable daily access
Reasonable daily access is determined by the student’s proximity and their ability to
attend their nearest appropriate state school on a daily basis.
4.1.2 Nearest appropriate state school
Usual definition
The nearest appropriate state school is normally the state school that is nearest the
principal family home by accepted travel routes and is appropriate for the student’s
level of education.
Where the nearest state school is identified by the state/territory government education
authority as a ‘selective’ or ‘specialist’ school, it is not considered to be the nearest
appropriate state school unless it is the school the student is attending.
If the student has special needs, as defined in 4.3, the nearest appropriate state school
will be the nearest state school that can meet those needs.
Example 2: Bus service available
Bruce’s principal family home is a property on the plains below a mountain range. The nearest school is in a town in the mountains (School A), 30 kilometres from Bruce’s home. The nearest transport service to School A is 20 kilometres away. Students in the plains area normally go to the school in a town on the plains (School B), 40 kilometres away. The nearest bus service to School B is 3 kilometres from Bruce’s
AIC Scheme: Policy Guidelines
Isolation conditions — 22
Several schools within 56 kilometres
Where there is more than one appropriate
state school within 56 kilometres of the
principal family home, the nearest school is
the one with the nearest available transport service (see 4.2.2).
Tertiary student
The nearest appropriate state school for a tertiary student is the nearest state school that
offers the year or grade of secondary schooling that would be appropriate for the
student, if they had continued to study at a secondary school.
Principal family home near state/territory border
If the student attends a school in the home state/territory, the nearest appropriate state
school is the school meeting the usual definition (see above) in the same state/territory
as the principal family home (even if there is a closer school in the adjacent
state/territory).
If the student attends a school in another state/territory, the nearest appropriate state
school is the school meeting the usual definition (see above) in either the home
state/territory or the adjacent state/territory.
4.1.3 Limited program schools
Limited program schools are not appropriate state schools when determining a student’s
geographic isolation for AIC Scheme eligibility. These schools must be identified by the
state/territory government education authority responsible for that jurisdiction and are:
• primary schools where the syllabus and teaching arrangements are specifically
geared to cater for the needs of Aboriginal or Torres Strait Islander students.
• secondary schools that either:
– do not offer a full range of years or grades
– do not provide adequate facilities or programs to enable a student to gain a
Year 12 certificate or tertiary entrance score
or
– have a syllabus and teaching arrangements that are specifically geared to cater
for the needs of Aboriginal or Torres Strait Islander students.
home. Although Bruce lives closer to School A, his nearest appropriate state school is School B. Therefore, Bruce is not geographically isolated from School B.
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Isolation conditions — 23
4.2 Geographical isolation rules
This section outlines the geographical isolation conditions that must be met by the
student to be eligible for the AIC Scheme.
• 4.2.1 Summary of rules
• 4.2.2 Applying Rules 1 and 2 (distance to school)
• 4.2.3 Applying Rule 3 (reasonable access).
4.2.1 Summary of rules
A student is regarded as geographically isolated from appropriate schooling if one of the
following rules is met:
• Rule 1: The distance between the principal family home and the nearest appropriate
state school is at least 56 kilometres by the shortest practical route
• Rule 2: The distance between the principal family home and the nearest appropriate
state school by the shortest practical route is at least 16 kilometres and the distance
between the principal family home and the nearest available transport service to that
school is at least 4.5 kilometres by the shortest practical route
• Rule 3: The student does not have reasonable access to an appropriate state school
for at least 20 school days in a year because of adverse travel conditions
(e.g. impassable roads) or other circumstances beyond the family’s control.
4.2.2 Applying Rules 1 and 2 (distance to school)
Rules 1 and 2 are based on the distance between the principal family home and the
nearest appropriate state school.
Evidence requirements
A claim on the basis of Rule 1 or Rule 2 does not have to be supported by evidence to
confirm geographical isolation. However, additional information may be requested to
independently verify the claim at any time.
Measuring distance to school
Where there is no transport service and one cannot be made available, the distance from
the principal family home to the school is measured from the front door of the home to
the school by the shortest practical route.
Where a transport service is available or could be made available if requested, the
shortest practical route is:
• the distance from the home to the nearest available transport service by the shortest
practical route
plus
• the distance from the transport service to the school by the route used by the service
(or connecting services).
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Isolation conditions — 24
Where morning and afternoon transport services differ in length, the average of the two
is taken.
Nearest available transport service
The nearest available transport service is the nearest pick-up point for any regularly
scheduled public transport, private carrier or school service going to the school or
connecting with other transport going to the school. This includes a pick-up point that
the carrier would make available if the family were to request transport to a local
school.
4.2.3 Applying Rule 3 (reasonable access)
Rule 3 applies where the student:
• does not have reasonable access to an appropriate state school for at least 20 school
days in a year because of adverse travel conditions or other circumstances beyond
the family’s control
or
• would not have such access if they did not board away from home, live in a second
home or study by distance education methods.
Adverse travel conditions or circumstances may include impassable roads due to special
weather conditions, lack of access to a vehicle or inability to drive for medical reasons,
and other unusual circumstances of isolation (e.g. the student lives on an island that is
not serviced by regular public transport).
Other circumstances beyond the family’s control may be approved, provided they are
supported by independent evidence that clearly establishes the circumstance and impact
on the student’s daily access to schooling.
Student without reasonable access
A student does not have reasonable access to an appropriate state school if, for at least
20 school days in a year they either:
• cannot get to school
• the travel time for the return journey to school is at least three hours
or
• the route the student must travel equals or exceeds the distances set down in Rule 1
and Rule 2.
Principles to determine circumstances beyond the family’s control
To satisfy Rule 3, the circumstances that prevent the student’s reasonable access to
school must be beyond the family’s control. A student should not be considered
geographically isolated if the family’s lifestyle choices (such as holidays and working
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Isolation conditions — 25
hours), commitments or domestic behaviours make it inconvenient or difficult (rather
than not feasible) to transport the student to school, or if the family chooses not to use
the local school for reasons beyond the intent of the AIC Scheme.
A concession under Rule 3 is not available where the student has been excluded or
banned from the available transport service by the transport company in consultation
with education authorities.
Circumstances normally considered within
the family’s control include:
• an impassable road on the family’s
property (unless it can be proven that the
situation is temporary and was
unforeseeable)
• a student’s exclusion from the available
transport service by the transport company
in consultation with education authorities
as a result of disciplinary matters
• inability to use a private vehicle because
the applicant or their partner’s licence has
been legally removed as a punitive
measure by a court or legal authority.
Evidence requirements
A claim on the basis of Rule 3 must be supported by evidence that substantiates the
existence of adverse travel conditions or other circumstances beyond the family’s
control and the effect they have on the student’s ability to get to school. Additional
supporting evidence may be required to independently verify the claim at any time.
The applicant needs to show that the student’s attendance at school, travel time or travel
distance is affected on at least 20 school days in a year, or would be if they did not
board away from home, live in a second home or study by distance education methods.
Where possible, evidence of the impact on the student’s attendance should be provided
for the previous year. If this is not available for the student, records for a sibling or
another student in similar circumstances may be accepted.
Where such information is not available, evidence of adverse travel conditions or other
circumstances must be detailed enough to demonstrate their impact on daily attendance
at the school.
Claims on the basis of travel time or distance should explain how these are or were
affected by the adverse conditions or other circumstance.
Measuring distance
For Rule 3, distance is measured in the same way as for Rules 1 and 2.
Example 3: Lifestyle choices
Stephen’s parents have moved to a hobby farm 14 kilometres from the nearest high school. There is no public transport available. His father drives 38 kilometres to work in the nearby city, leaving at 7:30 a.m. daily and arriving at his office at 8:15 a.m. Stephen’s mother works in town near the high school and leaves his baby sister at a child care centre at 7:45 a.m., which she says is too early for Stephen to arrive at school. This case would not be approved, as it cannot be claimed that Stephen does not have ‘reasonable daily access’ to a school. His parents have made lifestyle choices that make it inconvenient, rather than unreasonable, for them to get Stephen to school.
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Isolation conditions — 26
If the school transport service route or pick-up point varies on a daily, weekly or
monthly basis, so that the distance criteria are met on at least 20 school days in a year,
the student is considered to meet Rule 3.
Where the routes of the morning and afternoon transport services differ in length, the
two will be averaged.
Measuring travel time
Where a claim is made on the basis of excessive travel time, the travel time must be
based on:
• public or school transport routes and timetables, where travel is by such transport
and/or
• the shortest practicable route, where travel is by private transport.
In measuring travel time, the following speeds and/or times apply:
• where travel is by private road transport, the legal speed limit less 10 kilometres per
hour, or 40 kilometres per hour, whichever is the lesser
• where travel must be by private water transport, the lesser of the legal speed limit
and 4 knots; where no speed limit applies, 4 knots
• where travel to school is by public or school transport, timetabled travel times
• where the student is required to walk to the pick-up point, a walking speed of
2.5 kilometres per hour
• where the student is required to wait at a pick-up point before commencing each leg
of the journey, an additional 10 minutes waiting time per leg.
Travel time ceases when the student reaches their final destination (the school or the
home, whichever is applicable).
If the school transport service route or pick-up point varies on a daily, weekly or
monthly basis, so that the travel time criteria are met on at least 20 school days in a
year, the student is considered to meet Rule 3.
Where the routes of the morning and afternoon transport services differ in length and
therefore the time taken, the two times will be averaged.
Special weather conditions
Weather conditions leading to a student’s absence from school in the current or previous
year can be considered as circumstances beyond a family’s control. Such conditions do
not have to be extraordinary or abnormal, but evidence must demonstrate that the
conditions prevent the student from getting to school for at least 20 school days a year.
For example, the conditions of Rule 3 would be met if rainfall could be expected to
make roads impassable on at least 20 school days in a year.
Evidence that can be considered to validate an applicant’s claim on this basis is either:
• confirmation by the school that there is a likely possibility of 20 days of absence
• historical weather reports
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Isolation conditions — 27
and/or
• the student’s record of attendance for the previous one or more years, or their
sibling’s record (if circumstances were similar).
Impassable roads
If there is no evidence that the student’s (or their sibling’s) school attendance has been
previously affected by impassable roads, one of the following must be provided:
• a report from the operator of the school bus service, indicating how the bus route (or
the student’s access to it) was affected and the number of days over the relevant
period on which it was affected
• a report from the shire/council engineer or other similar officer
– stating that the road in question was impassable on particular dates and giving
the reasons (e.g. rainfall, road construction)
or
– describing in detail the weather or other circumstances in which the road
becomes impassable, how long it remains impassable, and evidence (e.g. rainfall
records) showing the dates on which those circumstances occurred in previous
years (where the officer gives a professional opinion about the impact of the
described circumstances, this should be taken into account)
• a report from a local, state or national authority having prime responsibility for
roads, water or land management
– stating that the road in question was impassable on particular dates and giving
the reasons (e.g. rainfall, road construction)
or
– describing in detail the weather or other circumstances in which the road
becomes impassable, how long it remains impassable, and evidence (e.g. rainfall
records) showing the dates on which those circumstances occurred in previous
years (where the officer gives a professional opinion about the impact of the
described circumstances, this should be taken into account).
Rainfall levels, other weather conditions or the material used in road construction are
only relevant to the extent that they contribute to a road being impassable.
Non-access to private transport
Claims on the basis that the applicant and (where applicable) their partner do not have
access to a vehicle or are medically unable to drive a vehicle must be accompanied by
appropriate documentation (e.g. medical reports, police statements, or confirmation that
there is no record of a registered vehicle). The evidence provided should state the
duration of the situation.
Where an applicant and/or their partner’s access to a vehicle, has been removed by a
court (i.e. due to conviction) or other legal authority (i.e. police officer), the intention of
this policy is not met and a student’s geographic isolation needs to be established using
other criteria.
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Isolation conditions — 28
4.3 Students with special needs
This section outlines the criteria that allow students with special needs to be eligible for
the AIC Scheme.
• 4.3.1 Summary
• 4.3.2 Definition of a disability or health-related condition
• 4.3.3 Evidence requirements
• 4.3.4 Duration of special need assessment
• 4.3.5 Types of special needs.
4.3.1 Summary
Where a student has a disability or other health-related condition or a special education
need that requires a special school program, special facilities and/or a special
environment, the nearest appropriate state school (for the purposes of the geographical
isolation rules outlined in 4.2) is the nearest state school that can provide, or is close to,
the required services.
Types of special needs are set out in 4.3.5.
4.3.2 Definition of a disability or other health-related condition
A disability or other health-related condition is defined as either:
• a physical or intellectual disability
• a psychological, emotional or behavioural problem
• a medical condition
or
• pregnancy.
In this part of the guidelines, ‘condition’ includes disabilities and other health-related
conditions.
4.3.3 Evidence requirements
Except for students who attend a special school, claims on the basis that the student has
a special need will normally need to be supported by evidence. The sections in 4.3.5
dealing with types of special needs give details of the evidence required in each case.
Evidence is not required if the applicant confirms that the circumstances of an earlier
approved claim have not changed and:
• it is clear from that the student’s condition is permanent and requires ongoing access
to facilities or an environment that is not available locally
• the student’s course or treatment will carry on for the current year
or
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Isolation conditions — 29
• the student had a demonstrated special need in Year 11, is entering Year 12 at the
same school, and is eligible for the Year 12 continuity of schooling concession (see
4.4.5).
Evidence must relate to the period of AIC Scheme eligibility. This requirement ensures
that a change in circumstances (e.g. availability of special facilities close to home, or an
end to the need for treatment) has not affected eligibility.
4.3.4 Duration of special need assessment
Some circumstances giving rise to a special need are temporary. The evidence in
support of claims of this type must include an estimate of the duration of the condition
or circumstance, or, if an estimate is not possible, be dated no earlier than 1 July of the
year before the one to which the claim relates.
A special need assessment may carry over to allow continuity of schooling (at the same
school) until the end of the school year or until an allowance ceases to be payable
(e.g. because the student ceases to board away). See also 4.4.5 for the continuity of
schooling concession.
4.3.5 Types of special needs
Student attends a special school
A student can be regarded as having a special need if they attend a special school that
addresses the student’s specific educational requirement and meets the AIC Scheme’s
geographic isolation criteria (see 4.2).
A mainstream school that has special facilities for students with disabilities, health-
related conditions and/or learning difficulties is not regarded as a special school.
Students attending such a school must be assessed according to Student needs access to
special facilities or a special environment.
A claim for a student who attends a special school does not normally need to be
supported by evidence. The fact that the student attends the school will normally
establish that the student has special needs. However, if a student who normally attends
a special school near the principal family home and requires access to additional
specialist assistance, evidence must be provided to demonstrate that the special school is
not an appropriate school for that assistance.
Student needs access to special facilities or a special environment
A student can be regarded as having a special need if they need access to special
facilities or a special environment to help manage or overcome a condition that
precludes access, or is likely to preclude access, to their local state school for more than
20 school days in a year. ‘Special facilities or a special environment’ includes:
• a special centre which caters for the student’s condition and which they must attend
part-time while spending the remaining time at school
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Isolation conditions — 30
• special educational or physical facilities within a normal school (e.g. a visiting
specialist teacher for blind students, or ramps for easy wheelchair access)
• in the case of a psychological, emotional or behavioural problem, the controlled
environment and close supervision that are normal features of boarding institutions
• an environment with a climate that gives relief from a condition associated with the
climate in the vicinity of the principal family home
• an environment in which the student can avoid the ill effects of lengthy daily travel
or
• an environment in which the student can obtain essential and extensive medical
treatment.
A claim of this type must be supported by medical
evidence and (where applicable) a statement from
the school or service offering the facility or
treatment, outlining how it will aid the
management of the condition. Evidence from a
specialist is necessary for conditions that require
specialist treatment (e.g. psychiatric or severe
allergic conditions). The evidence must establish
the nature of the condition and clearly demonstrate
that:
• the special facilities or environment are not
accessible at a local school or in the vicinity of
the principal family home
• the student’s condition is better managed or
overcome by access to the facilities or
environment at the boarding (or second home)
location
• where applicable, the special facilities or
environment are necessary to such an extent
that the student must live away from home
rather than access them periodically.
For medical conditions that are not clearly serious
(e.g. allergy, conditions affecting travel), the
evidence must also demonstrate that:
• there is no suitable medication or treatment that
is both reasonably available and able to
alleviate the effects of the condition
• the condition is likely to result in the student
being absent from local schooling on at least
20 school days in a year.
Example 4: Taunts and ridicule
Dylan’s father is in prison and Dylan has faced taunts and ridicule in the small town where he lives. He starts skipping school and his behaviour and emotional health deteriorate to the extent that doctors and school guidance counsellors strongly recommend he board for the rest of the year in the supervised environment of a boarding school. A claim may be approved because the evidence makes it clear that he needs to board to achieve and maintain his emotional health.
Example 5: Sibling’s problems
Kelly’s younger sister has multiple intellectual and behavioural problems that require significant attention from her parents. They seek assistance for Kelly to go to boarding school, as they are worried that her senior secondary education will suffer because of the disruptive atmosphere at home. To date, Kelly has done well at her local school, and there is no evidence that she has any psychological or behavioural problems. This claim should not be approved.
Example 6: Daily travel and health
Donna, 14, has rheumatoid arthritis. Although her condition can be alleviated to some extent by medication, it is made worse by frequent and lengthy travel. Her condition requires regular supervision by a medical specialist. Donna’s family provides evidence that her health will be adversely affected by her continuing to travel the long distance to and from her local school. The claim may be approved.
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Isolation conditions — 31
Example 7: Motion sickness
During the week, Andrea attends boarding school in a city 1½ hours drive from her home. Her route to the city passes the local secondary school, which is 25 kilometres from her home and connected by a school bus service. Her mother applies for the AIC Scheme on the grounds that Andrea suffers from motion sickness and cannot travel to school daily (but can travel the longer distance to and from the boarding school each week). A GP’s certificate states only that Andrea suffers from motion sickness. The claim should not be approved because the medical evidence does not clearly show that her motion sickness is so severe that her health is adversely affected by the daily travel to school, or that there is no suitable medication to alleviate the problem.
Example 8: Specialist medical needs
David lives in a rural town. He is in remission from leukaemia but needs frequent medical checks from a city-based specialist. His parents apply for the AIC Scheme so that he can attend school and board in the city, close to the specialist who is supervising his case. AIC Scheme claim may be approved because David is in need of essential and frequent medical services that are not available in his home town.
Example 9: Proximity of specialist medical services
Penelope attends a boarding school in a provincial city. Her mother applies for the AIC Scheme on the grounds that her daughter suffers from asthma and must visit her specialist regularly. The specialist lives in the capital city, which is closer to the principal family home than to the boarding school. The AIC Scheme claim should not be approved because, if access to the medical specialist were the reason for Penelope’s attendance at boarding school, the chosen school would be near the specialist for easy access, which is not the case.
Example 10: Non-essential medical need
Dominic, Carly and Brendan have been registered to attend boarding school as each reaches Year 7. The dentist in their home town suggests that the two eldest children would benefit from specialist orthodontic treatment once they are living in the city. Soon after starting boarding school, Dominic begins a course of orthodontic treatment. His father applies for the AIC Scheme. This claim should not be approved, because it has not been clearly demonstrated that the orthodontic treatment is ‘essential and extensive’ medical treatment, or that the condition is likely to result in at least 20 school days absence a year. From the information given, it seems that the specialist orthodontic treatment is a consequence of its accessibility from the boarding school.
Example 11: Medical hazard in local environment
Elliot, 10, has lived all his life in a mining town. Medical tests show that heavy metal levels in his blood are abnormally and dangerously high, and that his intellectual development is at risk. Medical authorities advise his parents to board him away from home as soon as possible, and the parents apply for the AIC Scheme. The claim may be approved, because it is clear from the medical evidence provided that Elliot’s health would be adversely affected should he continue to study in his home town, which has an environment that is directly causing his health condition.
Example 12: Medical condition not connected with local environment
Elissa has suffered from asthma all her life. It is kept under control by medication. There is no evidence that her condition is worsened or improved by living in different environments. She is due to go away to boarding school in Year 8, and her mother applies for the AIC Scheme on the grounds that Elissa suffers from chronic asthma. Approval should not be granted, as no evidence has been provided to show that Elissa’s health will be adversely affected if she continues to study in her home town.
Student needs to study from home
Example 13: Student pregnancy
Brenda, 15, is 6 months pregnant and does not want to
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Isolation conditions — 32
A student can be regarded as having a
special need if they study by distance
education because of a condition that:
• needs facilities and/or
environmental conditions
(e.g. care) available from the
family home
or
• requires the student to avoid travel
of the sort that would be necessary
to attend school each day.
A claim of this type must be
supported by medical evidence that establishes the nature of the condition. Evidence
from a specialist is necessary for conditions that require specialist treatment
(e.g. psychiatric or severe allergic conditions).
For conditions other than pregnancy, it must be clear that it would be harmful to the
student’s health (not merely a discomfort) if they were to attend school daily. For
medical conditions that are not clearly serious (e.g. allergy), the evidence must
demonstrate that:
• there is no suitable medication or treatment that is both reasonably available and
able to alleviate the effects of the condition
• the condition is likely to result in the student being absent from local schooling on at
least 20 school days in a year.
Student needs to be removed from local school environment
A student can be regarded as having a special need if they need to be removed from the
local school because of either:
• interpersonal problems affecting psychological, emotional or physical health
(e.g. bullying, harassment)
or
• expulsion from school.
A claim of this type must be supported by a statement from the chief executive of the
state/territory government education authority or their delegate, indicating:
• the reason for the removal of the student (in broad terms only, e.g. interpersonal
problems affecting health, expulsion)
• that the family and the school have attempted, without success, to resolve the
problem
and
• that there is no suitable local school that the student can attend daily.
If the claim is on the basis of a disability or other health-related condition, it must also
be supported by medical evidence that establishes that there is a health-related problem
and recommends that the student be removed from the school.
continue going to the local high school. Her teachers arrange for her to study at home and help her to enrol at a distance education centre. Distance Education Allowance may be approved.
Example 14: Reduced capacity
Shelley, 12, has been diagnosed with a brain tumour. She is trying to keep up with her schoolwork by studying at home by distance education methods, while undergoing extensive medical treatment. She can concentrate only for short periods, and the distance education centre expects her to submit assignments only as and when she feels able to do so. Distance Education Allowance may be paid as long as the school considers Shelley to be enrolled and studying full-time, even though she has a workload smaller than other students.
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Isolation conditions — 33
Student needs testing or support for a learning disability
A student can be regarded as having a special need if they need to be away from home
for at least five days to undertake diagnostic testing and/or receive support for a learning
disability at an institution or centre providing specialist services of that type.
The placement must be with the approval of the relevant education authority and/or the
institution concerned.
A claim on this basis must be supported by a statement from the education authority, or
their delegate (e.g. an educational psychologist). The statement must also give the
period for which testing/support is required.
Note: A statement from a teacher or counsellor at the school is not sufficient evidence
on its own.
Student needs learning support
A student can be regarded as having a special need if they require access to a program
delivered by a specialist teacher or facility for learning support.
The program must be of at least one and a half hours per week in an area of specific
learning difficulty, disability or ESL need. It is not sufficient that the program merely
involves increased individual attention or a modified course of the type generally
available to students with learning difficulties in mainstream schools.
The student may receive the learning support at either the school or institution that they
attend full-time, or at a centre that they attend part-time while spending the rest of the
school week at a mainstream school.
A claim on this basis must be supported by evidence to verify the need for specialist
learning support, in the form of a recent written recommendation (see 4.3.3 and 4.3.4)
from either:
• the relevant education authority at the appropriate regional district office level
or
• a specialist assessment service used by such authorities (e.g. an educational
psychologist, child psychologist or health professional).
Note: A statement from a
teacher or school is not
sufficient evidence.
Evidence is also required from the
principal of the school or
director of the facility that
provides the support, giving
details of the program.
Example 15: Need for ESL classes
Julio’s family has arrived from Chile and is living in a medium sized country town. While the local school offers a broad range of subjects, there are no teachers with English as a second language (ESL) skills. Julio, in Year 8, is finding it very hard to cope and his work is getting worse. The education authority maintains that he needs to attend a school that provides specialist ESL classes. The boarding school Julio is to attend provides evidence that it can meet this need. Boarding Allowance may be approved.
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Isolation conditions — 34
Together, the evidence must clearly demonstrate that:
• the student requires specialist learning support to assist with a particular learning
disability or English as a Second Language (ESL) needs
• the student is receiving assistance of at least one and a half hours a week in a class
from a specialist teacher
• the assistance required is of a type that is not available locally.
If a report recommends that a student receive specialist assistance for a period of at least
two years, a second such report will not be needed until the beginning of the third year.
The maximum period of benefits that can be based on a single report is two years.
Evidence from the local school or facility confirming that the assistance cannot be
provided locally, however, must be provided each year.
Student would suffer serious educational disadvantage at local school
A student can be considered to have a special need if it can be demonstrated that they
would suffer a serious educational disadvantage if they had to attend the local state
school. A claim must be supported by written confirmation from the state/territory
government education authority and within the scope of the AIC Scheme (detailed
below).
A student cannot be considered as suffering from serious educational disadvantage
solely on the basis of either:
• a desire for the student to attend a school of choice, including a school that is
classified as ‘specialist’ or ‘selective’ or a school that will ‘enhance the student’s
academic prospects’
• the standard of teaching facilities
• the socio-economic, racial or ethnic mix of a school
• non-core subjects (e.g. subjects other than maths, science and English) being studied
by distance education methods
• inability to continue study in the same subjects or the same system after the
student’s parents have moved from one non-geographically isolated area to another
• family connections with another school
• difficulties with out-of-school care arrangements
or
• a desire for a family to send a child to a boarding school.
A claim that a student would suffer serious educational disadvantage must be supported
by a statement from the chief executive officer of the state/territory government
education authority (e.g. the Director-General) or their delegate. The statement must:
• give the reason that the local school is inappropriate for the student’s needs
• confirm that the student would be seriously educationally disadvantaged if unable to
study elsewhere
• state that the state/territory authority has no objection to AIC allowances being paid.
If the state/territory government education authority is supporting a claim on the basis
that the student cannot appropriately access a specific ‘core’ subject, or a range of
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Isolation conditions — 35
subjects to achieve a ‘core competency’(e.g. where teaching is conducted without a
qualified teacher in physical attendance i.e. through video conferencing), then the
supporting statement must also specify that:
• the particular ‘core’ subject is an essential part of study for all students in the
jurisdiction, at that particular year level; or, in educational jurisdictions that define
core competencies, the core competency cannot be met by any of the subjects
offered at the school
• delivery of the subject by correspondence is not appropriate for this individual
student.
Example 16: Core subject not available face to face
Allison is in Year 11 and must study English, a ‘core’ subject, through distance education modules. She is seeking to bypass the local school to access an AIC allowance. Her claim is submitted with a supporting statement from the .education authority, confirming that Allison is suffering serious educational disadvantage because she cannot get face-to-face tuition in English. The claim may be approved, because English is a core subject in Year 11.
Example 17: Elective subject not available
Jeremy, who is in Year 9, wants to study Japanese at the private boarding school his father attended in the city. The school he currently attends offers a standard range of subjects to Year 12, including French but not Japanese. An AIC Scheme claim on these grounds should not be approved, because a desire to attend a school to enhance a student’s academic prospects is outside the scope of the scheme.
Example 18: Elective subject not available face to face
Carrie, 16, attends a girls’ boarding school in the city, where she is studying Spanish. Her local school in the country does not teach Spanish on a face-to-face basis, but can allow Carrie to study the subject by distance education methods. An AIC Scheme claim on this basis should not be approved, because it is not expected that all students at Carrie’s year level learn Spanish (i.e. Spanish is not a ‘core’ subject).
Example 19: Specialist or selective school
An education authority has reclassified a number of state high schools as ‘specialist’ schools. Mary has gained a place in one such school for gifted and talented students but she lives too far away to attend on a daily basis. Her father enquires about the AIC Scheme to help with her boarding costs. A claim should not be approved unless there is no appropriate state school within the distances specified in Rules 1 and 2.
Example 20: Boarding for non-educational reasons
Craig and Stuart’s mother died 2 years ago. Their father has enrolled them at a boarding school in the city, as he finds it difficult to care for them on his own. An AIC Scheme claim should not be approved, as the boys are not boarding to fulfil an educational or medical need.
Example 21: Education authority refuses recommendation
Phoebe’s elder sister Phillipa received AIC allowances in Years 11 and 12 because the local school catered to Year 10 only. The school now provides up to Year 12, but there are only two students in Year 11 and all subjects except English are delivered by distance education methods. Phoebe’s parents believe she would be disadvantaged at the local school, and want her to board. A teacher supports the family’s case, but the education authority makes no recommendation. An AIC Scheme claim cannot be approved.
AIC Scheme: Policy Guidelines
Isolation conditions — 36
4.4 Students deemed to be isolated
In certain circumstances, a student can be regarded as not having reasonable daily
access to an appropriate state school without meeting a geographical isolation rule (see
4.2). This section outlines the circumstances in which a student may be deemed to be
isolated.
• 4.4.1 Student lives in a special institution
• 4.4.2 Parental occupation involves frequent moves
• 4.4.3 Student and sibling live in a second family home
• 4.4.4 Student’s sole parent’s occupation requires frequent overnight absences
• 4.4.5 Continuation and concessions.
4.4.1 Student lives in a special institution
A student may be deemed to be isolated if, because of the nature and extent of a
disability or other health-related condition, it is necessary or preferable for him or her to
live at a special institution.
A claim for a student who resides in a special institution does not need to be supported
by evidence. The fact that the student lives in the institution will normally establish their
need to reside at the special institution.
Note: The student must still undertake an approved course (see 3.4.3) at an approved
institution (see 3.4.2). The special institution does not necessarily have to be a school
(or approved institution). That is, the student may live at a special institution and attend
school at another institution, such as a special school.
4.4.2 Parental occupation involves frequent moves
A student may be deemed to be isolated if all the following conditions are met:
• either parent has an occupation where an itinerant lifestyle is a necessary
requirement for their livelihood
• the occupation requires that parent to work on site
• the occupation necessitates the relocation of the family
• that parent relocates at least five times a year for work purposes.
A student should not be deemed isolated under this provision where:
• the parent operates out of a base, as they are not relocating the family
• the parent works solely in a geographically limited area where they could reasonably
be expected to maintain a fixed address (e.g. solely within a metropolitan area or
within 56 kilometres of a town or city)
• the parent is subject to transfer every two or three years (e.g. police officers, defence
service personnel, teachers) and could normally be expected to spend at least one
full school year in the one location (even if they have moved more than once in a
particular school year)
• the primary reason for travelling and seeking work is for a ‘working holiday’ or to
do unpaid voluntary work
AIC Scheme: Policy Guidelines
Isolation conditions — 37
or
• the occupation of the parent could reasonably be maintained within a limited
geographical area (e.g. if the parent chooses to be mobile to fill a niche gap in the
skills market).
The ownership of a family home in a particular locality does not necessarily affect
eligibility under this provision, except when:
• one parent lives there while the other moves about for work purposes
or
• the student lives there while both parents are absent.
An applicant’s claim will be
considered according to their
individual circumstances. A claim for
a student whose parent’s occupation
involves frequent moves must be
supported by:
• a statement of the family’s
projected itinerary for the school
year for which the AIC allowance
is sought
• where relevant, a statement of the
family’s itinerary (including
locations and dates employed at
those locations) over the previous
12 months
• verification of the family’s past
and proposed movements, in the
form of employers’ statements or
similar evidence.
The applicant’s claim needs to be supported by evidence that this travel is a necessary
part of earning their livelihood, and not merely a preference. Evidence is required to
show that their particular trade or skills directly cause their itinerancy.
If a family can demonstrate a detailed history of itinerancy in the previous 12 months,
this will help substantiate their claim.
4.4.3 Student and sibling live in a second family home
A student may be deemed to be isolated if they live in an approved second family home
(see 5.3.3) with a sibling who:
• meets an isolation condition (except under this provision)
and
• qualifies for the Second Home Allowance.
This provision is also extended to a student with a sibling who:
• is a secondary student aged 16 years or over
Example 22: Itinerancy for smaller part of the year
Mr and Mrs Brown run a business that excavates and prepares land for commercial property development. Most sites are in the metropolitan area, and the couple work at an average of six sites a year. They often spend up to 3 days and nights camping on site while blasting and clearing the area. Their sons attend a private boarding school in a provincial city, and Mr Brown applies for the AIC Scheme under the itinerancy provision. The claim should not be approved, as the principal family home is lived in by one or both parents for most of the year and at no time are the parents more than 56 kilometres from home.
Example 23: Itinerancy for non-essential reasons
Mr and Mrs Adams resign from their jobs and begin the round-Australia working holiday they have been planning for some years. They enrol their two daughters in boarding school and apply for the AIC Scheme under the itinerancy provisions. The claim should not be approved, as the Adams family is moving for holiday purposes, seeking work in the areas they travel to, and their occupation is not the main reason for the moves.
AIC Scheme: Policy Guidelines
Isolation conditions — 38
• meets an isolation condition (except under this provision)
• is receiving Youth Allowance or ABSTUDY at the ‘standard rate’ (or the ‘away
rate’ if a parent is not living in the second family home)
and
• was eligible for an AIC allowance (in the current or a previous year) immediately
before transferring to Youth Allowance or ABSTUDY.
Since the student may be deemed isolated only on the basis of a sibling, this assessment
will not be made until the sibling’s claim (for the AIC Scheme, Youth Allowance or
ABSTUDY) is approved in the year of assistance.
Normally, additional evidence will not be necessary to support a claim on this basis, as
the relevant information will be available from the sibling’s (or the student’s) claim.
Where a student has been deemed isolated under this provision and the sibling ceases to
receive student assistance (e.g. because they discontinue study), the student may remain
eligible under the continuity of schooling concession (see 4.4.5).
4.4.4 Student’s sole parent’s occupation requires frequent overnight absences
Before 2006, certain students could be deemed geographically isolated where the
occupation of their sole parent, by its nature, required frequent overnight absences. This
option was removed from 1 January 2006.
Any student who attracted AIC allowances on this basis in 2005 will continue to be
deemed geographically isolated until they complete or discontinue their course of study,
or their parent changes occupation (whichever is the earlier).
4.4.5 Continuation and concessions
Continuity of schooling concession
A student may be deemed to be isolated in order to limit disruption to the schooling of
students whose circumstances change during receipt of an AIC allowance. The
concession allows a student to be deemed isolated if:
• they cease to meet an isolation condition because of a change of circumstance
(e.g. change of principal family home, travel conditions, health conditions, parent’s
occupation)
and
• they continue to attend the same school (or continue to be enrolled through the same
distance education school).
This concession cannot be applied for students who:
• did not meet an isolation condition at any stage in the year for which assistance is
sought (an exception to this guideline exists for Year 12 students who met an
isolation condition in the year before the year for which assistance is sought)
or
AIC Scheme: Policy Guidelines
Isolation conditions — 39
• lived away from home in order to undertake a short-term program (e.g. for
diagnostic testing or learning support).
Under this provision, a student may be deemed to be isolated:
• from the date of the change of circumstance until the end of the year in which the
change of circumstance occurred
or
• for a student in Year 11, from the date of the change of circumstance until the end of
the following year, provided they continue to Year 12.
Retrospective continuity of schooling concession
The continuity of schooling concession may also be applied in reverse. A student who
does not meet a geographical isolation rule at the start of the school year may
retrospectively be deemed to be isolated for the earlier part of the year if:
• they begin to meet an isolation condition because of a change of circumstance
(e.g. change of principal family home, parent’s occupation or health condition,
discontinuation of school bus service)
• the student was placed in an approved boarding arrangement (see 5.2), enrolled in
distance education studies or began living in a second home in anticipation of the
change of circumstance that would make the student eligible later in the year
and
• the change has occurred and the student now meets an isolation condition.
To qualify for retrospective continuity, an applicant must demonstrate that they were
aware of the proposed change in circumstances at the time the student began to board,
study by distance education methods or live in the second home.
If the claim was lodged at that time, no further proof would be needed. In other cases,
however, suitable evidence would be required (e.g. a statement from an employer that
reveals when the parent was advised of a proposed transfer, a copy of a letter from a bus
company advising of a proposed change in services, etc).
Conditions in year of assistance for students unable to access a local state school
The application of Rule 3 is normally based on access to the local state school in the
year or years before the year in which assistance is sought. However, a concession is
available where:
• circumstances arise in (or just before) the year of assistance that affect or threaten to
affect the student’s access
• the conditions are circumstances beyond the family’s control
and
• on the strength of those circumstances, the family arranges for the student to board
away from home, live at a second family home or study by distance education
methods.
AIC Scheme: Policy Guidelines
Isolation conditions — 40
In such circumstances, the student’s geographical isolation can be established by
evidence showing that the circumstances would have affected their access at least 20
school days in a year.
This concession is not available where the student was boarding, living in a second
home or studying by distance education methods in the previous year, which would
indicate that the recent conditions did not lead to the family’s decision.
AIC Scheme: Policy Guidelines
Allowances — 41
5 AIC allowances
5.1 General entitlement and payment features
This section outlines the general entitlement and payment features of AIC allowances.
• 5.1.1 Which allowances apply
• 5.1.2 Calculation of amount of entitlement
• 5.1.3 Payment frequency
• 5.1.4 Term instalment periods
• 5.1.5 Taxation of allowances
• 5.1.6 Payee for allowances.
5.1.1 Which allowances apply
The applicable allowance for a student will normally reflect the student’s living
arrangements while they undertake the approved course:
• for a student who boards away from home in order to have daily access to
appropriate schooling, it will normally be Boarding Allowance
• for a student who lives in a second family home in order for them or their sibling
(see 5.3.2) to have daily access to appropriate schooling, it will normally be Second
Home Allowance
• for a student who lives at the principal family home while studying by distance
education methods (or undertaking residential schools for the distance education
course), it will normally be Distance Education Allowance
• for a student who lives in a second family home while studying by distance
education methods and the home is maintained for reasons other than access to
appropriate schooling for the student or their sibling, it will normally be Distance
Education Allowance
• where a student is receiving a Disability Support Pension or Parenting Payment
(Single), the applicable allowance is the Pensioner Education Supplement.
Where a student needs to stay in town for short periods during the year (e.g. while
access from the principal family home to the school is cut off due to special weather
conditions), short-term Boarding Allowance is available (see 5.2.7).
5.1.2 Calculation of amount of entitlement
Provided the eligibility requirements are met, AIC allowances (with the exception of the
Distance Education Allowance Supplement) are available for the full calendar year,
1 January to 31 December. Where eligibility exists for part of the calendar year,
allowances are calculated on a pro-rata basis. The Distance Education Supplement is
payable in one instalment (See 5.6.4).
AIC Scheme: Policy Guidelines
Allowances — 42
Where payments are calculated for instalments (fortnight, term or pro-rata), they are
done using the following calculation:
number of days in eligibility period × rate of annual entitlement
number of days in calendar year
5.1.3 Payment frequency
Term instalments
The following allowances are payable by term instalments:
• Boarding Allowance for eligible students living in schools, hostels or other
residential institutions, or participating in the pilot homestay program of the
Queensland Department of Education, Training and the Arts
• Distance Education Allowance
• the Pensioner Education Supplement for eligible students living in schools, hostels
or other institutions.
These payments are made in advance in three or four instalments, depending on the
number of school terms in the state or territory where the student is studying. Each
instalment covers a quarter or a third of the calendar year (depending on the term
structure), rather than the exact period between the relevant term dates.
Fortnightly instalments
The following allowances are payable fortnightly in arrears:
• Boarding Allowance for eligible students boarding privately
• Second Home Allowance
• Pensioner Education Supplement for eligible students boarding privately.
Single instalment
The Distance Education Allowance Supplement (see 5.6.4) is payable for eligible
students in one instalment. It is generally paid at the beginning of the year for students
eligible for the Distance Education Allowance in the previous year.
Short-term boarders
Payment for short-term boarders may be made by one of two methods. If the eligible
student is boarding at an institution and the exact period is known in advance, payment
may be made in advance. Otherwise, the allowance is paid in a lump sum after the
period of boarding has ended.
Entitlement for short-term boarders is normally calculated on the basis of the number of
days the eligible student boards away from home (see 5.2.6).
AIC Scheme: Policy Guidelines
Allowances — 43
5.1.4 Term instalment periods
Four-term states and territories
For four-term states or territories, the term instalment periods are:
1. 1 January – 31 March (90 days; 91 days in a leap year)
2. 1 April – 30 June (91 days)
3. 1 July – 30 September (92 days)
4. 1 October – 31 December (92 days).
Three-term state (Tasmania)
For Tasmania, the term instalment periods are:
1. 1 January – 30 April (120 days; 121 days in a leap year)
2. 1 May – 31 August (123 days)
3. 1 September – 31 December (122 days).
5.1.5 Taxation of allowances
The Australian Taxation Office classifies AIC allowances as ‘supplementary amounts’
for the purposes of section 24ABZF of the Income Tax Assessment Act 1936, making
them exempt from income tax.
Therefore, it is not necessary to deduct tax from AIC allowances, or to provide a
Payment Summary (previously known as a Group Certificate) to an applicant where the
only payments received in respect of a student are AIC allowances.
5.1.6 Payee for allowances
Allowances may be paid direct to the applicant or to an agent nominated by them
(e.g. the school, a private board provider or the student).
However, irrespective of who receives the payment, the applicant remains responsible
for any overpayment that may occur.
AIC Scheme: Policy Guidelines
Allowances — 44
5.2 Boarding allowances
This section outlines the purpose, rates and eligibility requirements for AIC Scheme
boarding allowances.
There are two boarding allowances:
• the Basic Boarding Allowance (5.2.1), which is payable to all eligible students who
board away from home
• the Additional Boarding Allowance (5.2.2), which is subject to the Parental Income
Test (unless the test is waived; see 6.8) and boarding costs.
• 5.2.1 Basic Boarding Allowance
• 5.2.2 Additional Boarding Allowance
• 5.2.3 Actual boarding charges
• 5.2.4 Full-time boarders
• 5.2.5 Part-time boarders
• 5.2.6 Short-term boarders.
5.2.1 Basic Boarding Allowance
See 5.6.1 for current Basic Boarding Allowance rates.
Purpose
Basic Boarding Allowance is intended to contribute towards the costs incurred by
geographically isolated families in boarding a student away from home to have daily
access to appropriate schooling.
Eligibility
To qualify for the Basic Boarding Allowance, a student must:
• meet the eligibility conditions in Parts 2, 3 and 4.
• live away from home in an approved boarding arrangement during school term
• not be receiving a pension (the Pensioner Education Supplement is available for
students receiving certain pensions; see 5.5)
and
• not have been formally placed in full-time residential care at a special institution by
a state/territory authority that provides a foster care allowance (or a similar
allowance intended for the upkeep of the student) to the organisation that operates
that institution.
AIC Scheme: Policy Guidelines
Allowances — 45
Approved boarding arrangements
A boarding arrangement at a boarding school, hostel or special institution is an
approved boarding arrangement.
A private boarding arrangement is an approved boarding arrangement (other than those
mentioned above), except where provided by:
• a parent of the student
or
• an older dependent sibling, where the sibling and the student live in what is, in
effect, the family’s second home (see 5.3).
A boarding arrangement may be approved where the student does not board for the
whole school week (see 5.2.5).
5.2.2 Additional Boarding Allowance
See 5.6.2 for current Additional Boarding Allowance rates.
Purpose
Additional Boarding Allowance is a means-tested supplementary payment to provide
additional support for lower-income families whose geographically isolated student
boards away from their principal family home.
Eligibility
To qualify for the Additional Boarding Allowance:
• the student must qualify for Basic Boarding Allowance (see 5.2.1)
• the income level of the applicant and (if applicable) their partner must be at or
below the applicable upper limit for the Parental Income Test (see 6.7.2)
or
the Parental Income Test is waived due to ‘special assessment’ (see 6.8.2)
and
• the student’s boarding costs must exceed the level of Basic Boarding Allowance.
Boarding costs
Additional Boarding Allowance is payable only if the actual boarding charges (as
defined in 5.2.3) are greater than the minimum threshold of the rate of Basic Boarding
Allowance less $250 for incidentals.
A family may qualify for the maximum rate of Additional Boarding Allowance only if
the actual boarding charges are at least the amount shown in 5.6.2.
AIC Scheme: Policy Guidelines
Allowances — 46
Entitlement
Additional Boarding Allowance entitlement is subject to the result of the Parental
Income Test (see 6.1) and the level of the student’s boarding costs (see Boarding costs,
above).
The maximum rate of the Additional Boarding Allowance is payable if:
• the Parental Income Test is waived (see 6.8) or the income level of the applicant and
(if applicable) their partner is at or below the Parental Income Free Area for the
Parental Income Test (see 6.7.1)
• the actual boarding charges plus $250 are greater than or equal to the applicable
maximum rates of Basic Boarding Allowance plus Additional Boarding Allowance
(see 5.6.2).
A partial rate of the Additional Boarding Allowance is payable if:
• the level of the parental income is equal to or lower than the applicable Upper
Income Limit (see 6.7.2)
or
• the actual boarding charges plus $250 are greater than the rate of Basic Boarding
Allowance (see 5.6.1) but less than the applicable maximum rate of Additional
Boarding Allowance (see 5.6.2).
The actual rate of entitlement will be either the maximum rate of entitlement less the
deduction resulting from the Parental Income Test or the level of boarding costs,
whichever is the least.
Students in foster care
A student in an official substitute or foster care arrangement may qualify for Additional
Boarding Allowance only if the foster carer is not receiving a foster care allowance (or
other similar allowance intended for the upkeep or personal use of the student) from a
government authority (see also 6.8.2).
Note: Such a student is eligible only if isolated or deemed isolated on the basis of the
foster parent’s principal family home (see Part 4) and, if boarding away from home,
would be expected to spend vacations with the foster parent rather than a natural or
adoptive parent, or other guardian.
To substantiate eligibility on this basis, the applicant (the foster parent) must provide a
statement from the relevant government agency which:
• confirms that a direction or authorisation by a court, Minister or government
authority is currently in effect in relation to the student’s care
• confirms the details of the care arrangement, including the names and addresses of
those authorised to care for the student
and
• indicates whether the authorised carers receive a foster care allowance or similar
allowance intended for the student’s upkeep or personal use.
AIC Scheme: Policy Guidelines
Allowances — 47
5.2.3 Actual boarding charges
In these guidelines, ‘actual boarding charges’ are the fees charged by the boarding
provider for the eligible student during the relevant school year (inclusive of Goods and
Services Tax). This is the amount of boarding fees claimed by the institution after any
reduction, subsidy, scholarship or refund is taken into account (see also 5.2.4).
For example, if an institution grants a student a scholarship or bursary for boarding
costs, the applicant does not incur the boarding fees. This means, for the purposes of
the AIC Scheme, the actual boarding charges for the student are nil and Additional
Boarding Allowance is not payable.
Other arrangements to pay boarding fees (i.e. contribution by private sources such as
friends or relatives) do not affect the level of actual boarding charges and are considered
the equivalent of the paying the boarding fees.
The charges must be for boarding only, and may include accommodation-related costs,
such as laundry. Actual boarding charges do not include tuition fees or other associated
education costs (e.g. books, uniforms or pens).
Students with disabilities who board in special institutions might remain there for
periods beyond normal school terms. Boarding costs for those periods may be included
as part of the student’s boarding costs for the year.
If a student moves to a different boarding facility (e.g. to less expensive boarding
arrangements), the entitlement must be recalculated. The actual boarding charges should
be based on the total boarding costs incurred for the school year, so any reassessment
because of reduced boarding costs will be retrospective to the initial entitlement to
Additional Boarding Allowance.
If a student begins, or ceases to board during the year, or is a part-time boarder (see
5.2.5), or short-term boarder (see 5.2.6), the actual boarding charges should be
converted to an annual amount (calculated on a calendar year) to allow a fair
comparison of boarding costs and the rate of Boarding Allowance.
5.2.4 Full-time boarders
To qualify for the full boarding allowance entitlements, an eligible student must board
away from their principal family home full-time (defined as at least four nights per
school week).
5.2.5 Part-time boarders
A part-time boarder is an eligible student (full-time) who boards away from their
principal family home for fewer than four nights a week on a regular basis. Entitlement
for a part-time boarder is calculated pro rata as a proportion of one week (seven days).
AIC Scheme: Policy Guidelines
Allowances — 48
A boarder can be considered part-time if they board in an approved boarding
arrangement on a one-week-on, one-week-off basis (i.e. a full week—five days—of
school attendance every second week) continuously over a full term or school year.
However, where the entitlement cannot be expressed as a whole number in proportion to
one week (seven days), it is rounded up to the nearest whole number; for example,
five days a fortnight (5/14) is rounded up to three days a week (3/7) for the calculation
of entitlement. Thus, an eligible student boarding away for one, two or three nights each
week is entitled to 1/7, 2/7 or 3/7 (as appropriate) of their normal entitlement. An
eligible student regularly boarding away for two nights in one week and three nights the
next week is entitled to 3/7 of a full week’s allowance.
A part-time boarder is entitled over the same period as a full-time boarder, including to
the end of the academic year, provided they board part-time for the usual number of
days in the final week of school term.
A part-time boarder is entitled to pro-rata Additional Boarding Allowance, calculated on
the same basis as Basic Boarding Allowance.
5.2.6 Short-term boarders
A short-term boarder is entitled only for the number of days they board away from their
principal family home (see 3.7.1).
A short-term boarder is entitled to pro-rata Additional Boarding Allowance, calculated
on the same basis as Basic Boarding Allowance.
AIC Scheme: Policy Guidelines
Allowances — 49
5.3 Second Home Allowance
This section outlines the purpose and eligibility requirements of the Second Home
Allowance.
See 5.6.3 for current Second Home Allowance rates.
• 5.3.1 Purpose
• 5.3.2 Eligibility
• 5.3.3 Approved second family home
• 5.3.4 Parent temporarily employed in isolated area
• 5.3.5 Loss of a parent
• 5.3.6 Eligibility where no parent normally lives at the principal family home
• 5.3.7 Pro-rata entitlement
• 5.3.8 Maximum annual entitlement per family.
5.3.1 Purpose
Second Home Allowance contributes towards the costs incurred by geographically
isolated families in maintaining a second family home for a student to have daily access
to appropriate schooling.
5.3.2 Eligibility
To be eligible for Second Home Allowance:
• the eligibility conditions outlined in Parts 2, 3 and 4 must be met.
• the student must live at an approved second family home during the school week
(see 5.3.3)
• the nominated principal family home must remain approved as the principal family
home
and
• the student must not be receiving a pension (the Pensioner Education Supplement is
available for students receiving certain pensions; see 5.5).
Second Home Allowance may be paid for a student who is deemed to be isolated
because they live in a second family home with a sibling who meets a geographical
isolation rule (see 4.4.3). If, during a year, the sibling ceases to meet one of the
conditions outlined in 4.4.3, the continuity of schooling concession may be applied (see
4.4.5).
AIC Scheme: Policy Guidelines
Allowances — 50
5.3.3 Approved second family home
To access an allowance a second family home must make access to appropriate
schooling easier.
It is not necessary for the applicant or the applicant’s partner to live at the second home.
The student may be in the care of another person, such as an older sibling or
grandparent, as long as the costs of maintaining the home are borne by the family, and
the student is regarded as living in a second home rather than boarding.
The second family home cannot be approved where either:
• the parents are separated or divorced, and the second home is the normal residence
of one of the parents
• the family receives rent assistance provided by the Australian Government for the
home (i.e. the home is considered to be the principal home for the purposes of rent
assistance)
• the second home is not closer nor more accessible to the school the student attends
when compared to the principal family home
or
• the parent or parents have received the First Home Owners Grant for that property.
See 5.3.5 for details of how approval is affected by death or separation.
5.3.4 Parent temporarily employed in isolated area
Where a parent accepts temporary (including fixed-term contract) employment in an
isolated area, the dwelling in which that parent then lives is not the principal family
home if:
• the other parent and children remain at the family’s permanent home and the
children continue to attend school daily
or
• the family chooses to lease or rent out their permanent home (which normally
allows access to school on a daily basis) for the duration of the posting and the non-
absent parent rents another house (claimed as the second home), from which the
children attend school daily.
In many instances, employer-provided accommodation will not meet the requirements
for a principal family home because they do not cater for family members (e.g.
accommodation on a mine site).
AIC Scheme: Policy Guidelines
Allowances — 51
Example 24: Change in principal family home
Mr Martyn has accepted a two-year government posting as a wildlife officer on Cocos Island. His wife and primary school age children go with him, and they live in government-subsidised accommodation. The eldest child boards with relatives in her home city, as there is no senior high school on the island. Her father applies successfully for the Basic Boarding Allowance. Some months later, Mrs Martyn decides to return to their previous home (which is near an appropriate school) with the other children and the family claims the Second Home Allowance for all three students. The allowance cannot be approved, as Mrs Martyn and the children are living in their (permanent) principal family home.
Example 25: Principal family home is where the family is
Mrs Redway, who has lived with her husband and two secondary school age children in Wagga Wagga, accepts a posting as a teacher in a small country primary school. She is provided with subsidised accommodation (sufficient to house her entire family) near the school. However, the Redways decide to maintain a home in Wagga so that their children can continue at the local high school. Mrs Redway usually stays at her subsidised premises during the school week and travels to be with her family in Wagga on weekends and holidays. Shortly after Mrs Redway takes up her posting, her husband and children move to a new house in Wagga. She applies for Second Home Allowance on behalf of her children, claiming that the subsidised home is the principal family home. The claim cannot be approved, as her permanent home is the house in Wagga.
5.3.5 Loss of a parent
Where death or separation results in the sole parent continuing to live with the eligible
student at a previously established second home while neither parent lives in the
principal family home, Second Home Allowance may continue, provided the reasons
for approval of the original principal family home and the second home continue to be
met, but for the requirement that the applicant resides for over half the eligibility period
in the original principal family home.
However, if separation results in one parent living at the principal family home and the
other living with the student in the second home, then the second home cannot continue
to be approved as a second family home. In such circumstances, the provisions of 2.1
will be followed to determine the approved applicant and, consequently, the student’s
principal family home. Geographical isolation will be determined with reference to the
principal family home of the approved applicant.
For the family to remain eligible on the basis of the continuity of schooling concession
(see 4.4.5), the principal family home (which may previously have been an approved
second home) must meet a geographical isolation criterion.
AIC Scheme: Policy Guidelines
Allowances — 52
Example 26: Mobile home accommodation
Mrs Kent and her husband divorce, leaving her with the family farm. Before the divorce, Mrs Kent had spent school terms living in accommodation in a mobile home park so that her two daughters could attend high school daily. She continues this arrangement and, with the help of her parents and brother-in-law, spends weekends and school holidays keeping the farm productive. Second Home Allowance for the mobile home park accommodation may be approved.
Example 27: Parent’s move eliminates eligibility
Alison’s parents own an isolated property. Her parents set up an approved second home just 5 kilometres from the high school Alison attends. Alison and her younger brother have spent school terms living in the second home with their mother for 3 years. Alison’s parents separate during the school year, agreeing that the children will continue to live with their mother in what was the second home. As the children normally live with her, Alison’s mother becomes the approved applicant and the home in which she lives becomes the principal family home. As a result, Second Home Allowance is no longer payable from the date of the separation.
Example 28: Principal family home must be occupied
Stuart’s mother and her de facto partner move to an isolated community and set up an art studio in an old building. The partner then leaves. As Stuart has reached secondary school age and has no access to a high school, his mother moves to a larger town and rents a house. Although she continues to own the isolated property, it is unused. She receives a pension, and applies for the Second Home Allowance in respect of the rented house. The claim should not be approved, as there is no parent living in the principal family home.
5.3.6 Eligibility where no parent normally lives at the principal family home
Before 2006, a student could be eligible for a Second Home Allowance in situations
where neither parent lived at the principal family home for most of the year. This option
was removed from 1 January 2006.
Any student who attracted an AIC allowance on this basis in 2005 will continue to be
deemed geographically isolated until they complete or discontinue their course of study,
or arrangements for their principal family home change (in which case their eligibility
will be reassessed according to the policy applicable in the year of the reassessment).
5.3.7 Pro-rata entitlement
Entitlement is calculated on a pro-rata basis, using the formula in 5.1.2, when a student
is eligible for only part of the year.
5.3.8 Maximum annual entitlement per family
Where a home is an approved second family home on the basis of one student and that
student is receiving Youth Allowance or ABSTUDY, Second Home Allowance can be
paid for a maximum of three other students at any one time (but only including a
maximum of two other students deemed isolated under 4.4.3).
AIC Scheme: Policy Guidelines
Allowances — 53
See 5.6.3 for the current maximum amount of Second Home Allowance payable to any
one family.
5.4 Distance Education allowances
This section outlines the purpose and eligibility requirements of the Distance Education
Allowance and the Distance Education Allowance Supplement.
See 5.6.4 for current rates for Distance Education allowances.
• 5.4.1 Purpose
• 5.4.2 Eligibility
• 5.4.3 Acceptable study locations
• 5.4.4 Home tuition.
5.4.1 Purpose
The Distance Education Allowance, and the Distance Education Allowance
Supplement, contribute towards incidental costs incurred by geographically isolated
families whose student children are undertaking their education by distance education
methods. These payments are not intended to meet the ongoing cost of provision of
education (e.g. costs associated with teaching, tuition and supervision).
5.4.2 Eligibility
To be eligible for Distance Education allowances, a student must:
• meet the eligibility conditions in Parts 2, 3 and 4.
• be studying at home or an acceptable alternative to home (see 5.4.3)
• be undertaking an approved course (see 3.4.3)
and
• not be receiving a pension (the Pensioner Education Supplement is available for
students receiving certain pensions; see 5.5).
5.4.3 Acceptable study locations
Students for whom these allowances are paid normally study from home. However, the
following study arrangements are also acceptable:
• The student studies at and uses facilities of a school that does not offer tuition at the
student’s level (e.g. a secondary student who has access to a local primary school).
• The student studies at premises that are not classified as a mainstream school and do
not provide formal tuition by qualified teachers.
• The student studies at a ‘Homeland Learning Centre’.
AIC Scheme: Policy Guidelines
Allowances — 54
Note: Students who study at Homeland Learning centres and do not direct their
respective Distance Education allowance to the school may have their allowance
quarantined under the Social Security and Other Legislation Amendment (Welfare
Payment Reform) Act 2007.
5.4.4 Home tuition
A student may be eligible for Distance Education allowances if undertaking a course of
home tuition that has been formally approved by the state or territory government
education authority as a satisfactory alternative to the government curriculum in that
jurisdiction.
Where such approval lapses solely because the student has reached the statutory school
leaving age, the home tuition program may be deemed to be approved if it was approved
immediately before the student reached the leaving age.
5.5 Pensioner Education Supplement
This section outlines the purpose and eligibility requirements of the Pensioner
Education Supplement (PES).
See 5.6.5 for current Pensioner Education Supplement rates.
• 5.5.1 Purpose
• 5.5.2 Eligibility.
5.5.1 Purpose
The PES is intended to contribute towards educational costs incurred by parents of
geographically isolated students undertaking primary or ungraded levels of study.
5.5.2 Eligibility
The PES is paid for students receiving certain social security pensions. To be eligible, a
student must:
• meet the eligibility conditions in Parts 2, 3 and 4
• be studying at primary or equivalent ungraded level (see 3.4.4)
• be receiving, or qualify for, a Disability Support Pension or a Parenting Payment
(Single)
and
• qualify for either Boarding Allowance, Second Home Allowance or Distance
Education allowances (as applicable), except for the requirement not to be receiving
a pension.
Special age rules for pensioner students are given at 3.3.2.
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Allowances — 55
Secondary, tertiary or equivalent students who receive a pension are ineligible for
AIC allowances. Such students on a Disability Support Pension may be eligible for the
PES under the Social Security Act 1991 when they turn 16. Secondary (or equivalent)
students on a Parenting Payment (Single) may be eligible for the PES under the Social
Security Act from the minimum school leaving age in their state/territory.
AIC Scheme: Policy Guidelines
Allowances — 56
5.6 Current AIC allowance rates
This section outlines the 2008 and 2009 payment rates for each AIC allowance.
• 5.6.1 Boarding allowances
• 5.6.2 Additional Boarding Allowance
• 5.6.3 Second Home Allowance
• 5.6.4 Distance Education allowances
• 5.6.5 Pensioner Education Supplement.
5.6.1 Boarding allowances
• Where only Basic Boarding Allowance is payable:
• 1 January – 31 December 2008, $6,530 per year ($249.79 per fortnight)
• 1 January – 31 December 2009, $6,824 per year ($261.74 per fortnight)
• Where the Additional Boarding Allowance is payable, maximum of:
• 1 January - 31 December 2008, $8,694 per year ($333.48 per fortnight)
• 1 January - 31 December 2009, $9,085 per year ($348.46 per fortnight)
• Where a student is eligible for only part of the year, entitlement is calculated
pro-rata (see 5.1.2).
5.6.2 Additional Boarding Allowance
Threshold
• For Additional Boarding Allowance to be payable, actual boarding charges (see
5.2.3) must be greater than the minimum threshold of:
• 1 January – 31 December 2008, $6,280 (Basic Boarding Allowance ($6,530)
less $250 for incidentals)
• 1 January – 31 December 2009, $6,574 (Basic Boarding Allowance ($6,824)
less $250 for incidentals.
• For Additional Boarding Allowance to be payable, requirements under the Parental
Income Test (see 6.1) must be met.
Maximum rate
• 1 January – 31 December 2008, $2,164 per year
• 1 January – 31 December 2009, $2,261 per year
• Applies only if actual boarding charges (see 5.2.3) are at least:
• $6,280 for 1 January – 31 December 2008
• $6,574 for 1 January – 31 December 2009
AIC Scheme: Policy Guidelines
Allowances — 57
5.6.3 Second Home Allowance
• 1 January – 31 December 2008, $4,960 per year ($189.73 per fortnight)
• 1 January – 31 December 2009, $5,183 per year ($198.80 per fortnight)
• Entitlement is calculated pro-rata when a student is eligible for only part of a year
(see 5.1.2)
• Maximum for any one family (for up to three eligible students):
• 1 January – 31 December 2008, $14,880 per year
• 1 January – 31 December 2009, $15,549 per year
5.6.4 Distance Education Allowances
Distance Education Allowance
• 1 January – 31 December 2008, $3,265 per year
• 1 January – 31 December 2009, $3,412 per year
• Entitlement is calculated pro-rata when a student is eligible for only part of a year.
Distance Education Allowance Supplement
• 1 January – 31 December 2008, $1,000 per year per eligible student
• 1 January – 31 December 2009, $1,045 per year per eligible student
• Entitlement is based on eligibility and receipt of the Distance Education Allowance
in the previous year
• Payable as a lump sum at the beginning of the following year to receipt of the
Distance Education Allowance (i.e. families who receive a Distance Education
Allowance in 2008 receive the supplement in early 2009).
5.6.5 Pensioner Education Supplement
• For both 1 January – 31 December 2008 and 1 January – 31 December 2009, a
maximum of $1,627.00 per year ($62.40 per fortnight).
AIC Scheme: Policy Guidelines
Parental Income Test — 59
6 The Parental Income Test
6.1 Overview
This section outlines the requirements of the Parental Income Test, which is applied to
the Additional Boarding Allowance.
• 6.1.1 Purpose and application
• 6.1.2 Tax year used for assessment
• 6.1.3 Proof of income.
6.1.1 Purpose and application
The Parental Income Test is used to determine eligibility for Additional Boarding
Allowance.
However, the test may be waived in the circumstances outlined in 6.8.
6.1.2 Tax year used for assessment
Normal assessment using previous tax year
Assessment is normally determined by parental income for the base tax year.
However, this is not the case if either:
• the income of the applicant and/or their partner is assessed on a tax year other than
July to June (see Assessment using a different tax year, below)
• the applicant and/or their partner is in receipt of an employer-provided fringe benefit
(see 6.5)
or
• current income assessment (see 6.6) applies.
Assessment using a different tax year
In the following circumstances, the end of the relevant tax year might not fall on
30 June:
• The applicant and/or their partner has, under section 18 of the Income Tax
Assessment Act 1936, adopted a 12-month accounting period that ends on a different
date (in which case, evidence of the different accounting period approved by the
Australian Taxation Office is required)
or
• The income of the applicant and/or their partner comes mainly from a foreign
country that uses a different taxation accounting period (e.g. New Zealand has a
taxation period of 1 April to 31 March).
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Parental Income Test — 60
In such cases, unless current income assessment applies (see 6.6), the tax year ending
before 1 January of the year for which assistance is sought is used for the test.
6.1.3 Proof of income
Where the test applies, the applicant and (if applicable) their partner must provide proof
of income to support the claim. The evidence should normally be in the form of a
Taxation Assessment Notice.
If a Taxation Assessment Notice is not available, the following are acceptable forms of
interim evidence:
• a copy of the person’s tax return
• a letter from a qualified practising accountant or tax agent stating that the person’s
‘income for the 20xx–xx tax year is expected to be $xxxx’ or ‘… is not expected to
exceed $xxxx’
• where the person received a taxable pension, benefit or allowance from the
Australian Government for the full tax year, a statement of benefit from the paying
department or agency
• payment summaries or group certificates and/or statements of benefit supported by a
statutory declaration (or accountant certification) confirming that these show the full
amount of taxable income received by the person during the tax year.
Payment of Additional Boarding Allowance based on evidence other than a Taxation
Assessment Notice must be followed up for verification at a later date. (The applicant
should be asked to submit the Taxation Assessment Notice as soon as it becomes
available.)
Unless the Parental Income Test is waived, Additional Boarding Allowance will not be
paid where:
• the person being income tested refuses to disclose income details
• income details are not known or not supplied
or
• acceptable proof of income is not provided.
If acceptable evidence is not presented to verify the income of the applicant or their
partner, only the non-means tested Basic Boarding Allowance may be paid.
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Parental Income Test — 61
6.2 Whose income is taken into account?
This section shows whose income is taken into account in the Parental Income Test.
• 6.2.1 Applicant and partner
• 6.2.2 Separated or divorced parents
• 6.2.3 Applicant’s new partner
• 6.2.4 Loss or change of applicant or partner during the year of study.
6.2.1 Applicant and partner
In general, the Parental Income Test will apply to the incomes of the approved applicant
(see 2.1.1) and, where applicable, their partner.
6.2.2 Separated or divorced parents
Where the student’s parents are separated or divorced, they share joint custody of the
student, and neither has a new partner, the income of both will be taken into account for
the test, regardless of who is considered to be the approved applicant.
If parents are separated but living under the same roof, both incomes must be taken into
account whether or not the parents share joint custody.
6.2.3 Applicant’s new partner
Where the student’s parents are separated or divorced, they share joint custody of the
student, and one or both have a new partner, only the applicant and the applicant’s new
partner are income tested.
6.2.4 Loss or change of applicant or partner during the year of study
Generally, the Parental Income Test will apply to the approved applicant and their
partner at 1 January of the year of study. However, Additional Boarding Allowance
eligibility will be reassessed if the applicant or their partner changes during the
eligibility period (i.e. if the approved applicant changes, gains or loses a partner).
As a result:
• if the applicant loses a partner by death or separation, eligibility is reassessed from
the date of the change in circumstance, with the income test taking only the
applicant’s income into account
• if the applicant gains a partner (e.g. by remarrying or beginning a de facto
relationship), eligibility is reassessed from the date of change of circumstance, with
the income test taking the combined income of the applicant and the new partner
into account.
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Parental Income Test — 62
Reassessment is based on income for the base tax year (see 6.1.2) unless special
assessment (see 6.8.2) or current tax year assessment (see 6.6) applies.
If the approved applicant changes, the income test will apply to the new applicant (and
their partner, if any) from the date of the change.
The following examples show the effect of a change in the applicant or the loss or gain
of the applicant’s partner.
Example 29: Change in principal carer requires new claim
Until 14 August, Sonia’s parents live together in an isolated area and Sonia’s mother is an eligible applicant under the AIC Scheme. On that date, Sonia’s parents separate, her father begins a de facto relationship, and it is decided that her father and his de facto wife will be responsible for Sonia’s care from that date. Before 14 August, Sonia’s mother was entitled to an AIC allowance on the basis of her income and that of Sonia’s father. From 14 August, Sonia’s mother is no longer eligible, and her father becomes the approved applicant. He will need to submit a new claim, and entitlement will be calculated on the basis of the base tax year income of him and his new partner (unless the meet the requirements for a current tax year assessment).
Example 30: Reconciliation requires income test adjustment
Jordan’s parents separate on 14 February. His mother, who is the approved applicant, retains custody. She pays his boarding fees, and he stays with her in the school holidays. Jordan’s parents reunite on 15 October. The base tax year’s Parental Income Test is applied to both parents’ incomes to determine Jordan’s entitlement for the periods from 1 January to 13 February and 15 October to 31 December. The test is applied only to the mother’s income for the intervening period (14 February to 14 October).
Example 31: Maintenance and the income test
Adam’s parents separated when he was 3 years old. Since that time, he has been in the care of his mother, who is the approved applicant. Adam’s father has limited contact with him, but agrees to pay his boarding fees. On 16 August of the year of study, the parents reunite. The Parental Income Test, using the base tax year, is applied to Adam’s mother to determine entitlement for the period from 1 January to 15 August. The payments Adam’s father made for Adam’s boarding fees during that period must also be taken into account as maintenance received by Adam’s mother. From 16 August, the test is applied to the incomes of both parents (unless the meet the requirements for a current tax year assessment).
AIC Scheme: Policy Guidelines
Parental Income Test — 63
6.3 Calculating parental income
This section outlines the calculation of the Parental Income Test and the effects of
various factors on the Additional Boarding Allowance.
• 6.3.1 Basic calculation
• 6.3.2 Parental Income Free Area
• 6.3.3 Upper Income Limit
• 6.3.4 Other dependent children or students
• 6.3.5 Maintenance payments
• 6.3.6 Textiles, Clothing and Footwear Special Allowance
• 6.3.7 Effect of negative income
• 6.3.8 Income averaging not permitted
• 6.3.9 Income earned or received from overseas.
6.3.1 Basic calculation
To calculate parental income:
• Add:
– the taxable income of the person or couple being income tested
– any income derived by them from overseas, whether or not it was taxed overseas
(see 6.3.9)
– any maintenance payments to them or their dependants from a former partner
(who is now separated from the parent; see 6.3.5)
– the value of any claimed loss from rental property or a passive income earning
investment (negative gearing; see 6.4)
and
– the value of certain fringe benefits (see 6.5) provided to or for them by
employers.
• Deduct:
– maintenance paid (see 6.3.5) by them to or for a former partner, the former
partner’s dependants, or dependent children or students no longer in their care.
6.3.2 Parental Income Free Area
The Parental Income Free Area (PIFA) is the level of income at or below which the
maximum rate of Additional Boarding Allowance can be paid. Parental income above
the PIFA reduces the Additional Boarding Allowance entitlement by $1 for every
whole $4 of the excess.
The PIFA increases with the number of other dependent children or students in the
family (see 6.3.4). See 6.7.1 for the current PIFA level (unadjusted for other dependent
children or students).
AIC Scheme: Policy Guidelines
Parental Income Test — 64
6.3.3 Upper Income Limit
The Upper Income Limit is the level of income above which no Additional Boarding
Allowance is paid (see 6.7.2 for the current Upper Income Limit). The limit increases
with the number of other dependent children or students, as explained in 6.3.4.
6.3.4 Other dependent children or students
Definitions
In calculations of the PIFA and Upper Income Limit, a dependent child or student is a
person who is under 16, or aged from 16 to 24 and in full-time study, and either:
• a natural or adoptive child of either the applicant or the applicant’s partner
or
• wholly or substantially dependent on the applicant or the applicant’s partner (see
2.1.3).
Effect on Parental Income Free Area and Upper Income Limit
Both the PIFA and the Upper Income Limit are increased according to the number of
other dependent children or students in the applicant’s family.
Both are increased where there are one or more additional children or students who:
• are aged 16 or over
• are in full-time education (whether or not in an approved course)
• do not qualify as independent under Youth Allowance or ABSTUDY
and
• do not receive a social security or Department of Veterans’ Affairs pension, benefit
or allowance unless it paid for the purposes of study (except where Family Tax
Benefit is payable for a child/student).
Where dependent children are under 16 and eligible for either Boarding Allowance or
Second Home Allowance, the PIFA and Upper Income Limit are also increased.
The current rates of increase are given in 6.7.3.
Children and students who do not increase the Parental Income Free Area and
Upper Income Limit
Adjustments to the PIFA and Upper Income Limit cannot be made for a child or student
who:
• is regarded as independent under the Youth Allowance or ABSTUDY rules
• is in state-authorised care
AIC Scheme: Policy Guidelines
Parental Income Test — 65
• is living with the applicant or their partner under a student exchange program
or
• does not live with the applicant or their partner but for whom the applicant or their
partner pays maintenance.
Changes in the number of dependent children or students
All adjustments for dependent children and students are calculated on a continuing
basis. This means that the entitlement must be reassessed during the year if the number
of dependent children or students in the family changes.
6.3.5 Maintenance payments
The calculation of parental income takes into account all maintenance received or paid
by the applicant or their partner for the upkeep of dependants or former partners.
Payments for household expenses, rent, mortgage, rates, boarding costs, tuition fees and
general education expenses or any other purpose are to be included, even when made to
a third party or to the student.
Payments made by the Child Support Agency should also be included, as those
payments have originated from a non-custodial parent.
6.3.6 Textiles, Clothing and Footwear Special Allowance
The Textiles, Clothing and Footwear Special Allowance, which is paid under an
Australian Government scheme to people retrenched from the textiles, clothing and
footwear industries, is not counted in the Parental Income Test, as special assessment
applies (see 6.8.2).
6.3.7 Treatment of negative income
Negative parental income is treated as zero income in the income test. The negative
income of the applicant or their partner cannot be deducted from the other’s income.
6.3.8 Income averaging not permitted
Parental income cannot be averaged over several years (e.g. as allowed by the
Australian Taxation Office for primary producers). This is not the same as carrying
forward a previous year loss that is an allowable deduction for both income tax and
AIC Scheme income-testing purposes.
AIC Scheme: Policy Guidelines
Parental Income Test — 66
6.3.9 Income earned or received from overseas
Gross income earned or received overseas (less any deductions allowed in the foreign
country) and the value of employer-provided fringe benefits (see 6.5.1) provided
overseas are included in the income test. In addition, income earned in an Australian
external territory (e.g. Norfolk Island) or an overseas country where there are no
taxation arrangements is also included.
Income earned and the value of fringe benefits given in foreign currencies will be
converted to Australian dollars for the Parental Income Test at the average exchange
rate for the year. If the amount is shown on an Australian Taxation Office assessment
notice or similar document, this amount must be used (as it has already been converted).
The appropriate currency exchange rates are available on the Australian Taxation Office
website at www.ato.gov.au.
6.4 Negative gearing
This section outlines the use of an applicant’s negative gearing information in the
Parental Income Test.
• 6.4.1 Effect of negative gearing
• 6.4.2 Definitions
• 6.4.3 Valuing losses from rental properties and/or shares/investments
• 6.4.4 Self-declaration and compliance checks.
6.4.1 Effect of negative gearing
An applicant or their partner who reduces their taxable income by claiming a loss
against rental property or a passive income earning investment will have to add back the
value of the deduction (commonly known as ‘negative gearing’) for AIC Scheme
purposes.
These deductions are to be self-declared at the time of application by the applicant and
their partner (if applicable).
Investment and rental property losses flowing through to the individuals from property
owned in a trust or company are not taken into account for AIC Scheme income testing.
Any substantial changes in taxable income deductions resulting from negative gearing
may warrant reassessment because of the effect on current tax year or reverse current
income.
AIC Scheme: Policy Guidelines
Parental Income Test — 67
6.4.2 Definitions
Rental property
Rental property owned by an individual person includes:
• a house, home unit or flat
• a room in a house, home unit or flat
• an on-site caravan
• a houseboat
• overseas rental property
• any other similar rental property.
Passive income earning investment
A passive income earning investment is an investment where the person spends less
than 17.5 hours, on average, each week managing that investment.
6.4.3 Valuing losses from rental properties and/or shares/investments
Only the amount allowed as a taxable income deduction for the applicant or their
partner will be added to their income for the income test. For example, if a person’s
taxable income is reduced by $4,000 because of share investment losses (negative
gearing), that amount will be added to their income for the test.
6.4.4 Self-declaration and compliance checks
When claiming an AIC allowance, the applicant and their partner are required to self-
declare the net amount of negative gearing claimed against other taxable income in their
individual or partnership income tax return.
Centrelink may conduct compliance checks with the Australian Taxation Office.
AIC Scheme: Policy Guidelines
Parental Income Test — 68
6.5 Fringe benefits
This section outlines the use of fringe benefits information in the Parental Income Test.
• 6.5.1 Definitions
• 6.5.2 Types of benefits to be included
• 6.5.3 Valuing fringe benefits
• 6.5.4 First $1,000 of reportable fringe benefits exempt
• 6.5.5 Overseas fringe benefits
• 6.5.6 Ministers of religion.
6.5.1 Definitions
Fringe benefits include the value of any employer-provided benefit received during the
tax year. An employer-provided benefit is any right, privilege, service, in-kind payment
or facility that an employee receives (or assigns to someone else) through their
employment.
Employees may ‘sacrifice’ some of their cash salary and receive the value of that
amount as a fringe benefit. In other cases, a fringe benefit may be a fixed part of the
employee’s salary package.
6.5.2 Types of benefits to be included
Fringe benefits are specified by the Australian Tax Office. These items include, but are
not limited to:
• leasing of vehicles
• extra superannuation contributions
• investments
• housing assistance, low-interest loans and debt waivers
• expense payment fringe benefits
• living-away-from-home allowance benefits
• board fringe benefits (certain meals)
• car, housing, airline transport, car-parking, property and residual fringe benefits.
Further details can be found at www.ato.gov.au.
6.5.3 Valuing fringe benefits
As the value of the benefit is not recorded as salary for the employee, they do not pay
income tax on the amount. Instead, the employer pays Fringe Benefits Tax (FBT) on the
value of the benefit. Reporting fringe benefits is the responsibility of the employer.
The declared amount, which is used in the AIC Scheme Parental Income Test, is the
reportable fringe benefits total on the employee’s Taxation Assessment Notice.
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Parental Income Test — 69
The FBT year runs from 1 April to 31 March. Where applicants give an employer
statement of the value of their fringe benefits, the relevant FBT year is the one
completed in the base tax year. For example, for a 2008 AIC Scheme assessment, the
relevant year of income will ordinarily be 2006–07. The relevant FBT year will be the
one that ended on 31 March 2007. Assessments based on current tax year income can be
used where the criteria (in 6.7) are met.
6.5.4 First $1,000 of reportable fringe benefits exempt
The first $1,000 of reportable fringe benefits is exempt from the Parental Income Test
(reportable fringe benefits in excess of $1,000 appear on an employee’s Taxation
Assessment Notice). The amount will be reduced by the maximum tax rate, and the
adjusted fringe benefits will be added to the parental income.
6.5.5 Overseas fringe benefits
Where an applicant or their partner works overseas and receives fringe benefits, the
value of the benefits in Australian dollars is included (see 6.3.9 for the appropriate
exchange method).
6.5.6 Ministers of religion
Certain benefits received by ministers of religion are exempt under section 57 of the
Fringe Benefits Tax Assessment Act. Those benefits will not appear on their group
certificates, and so will not be assessed. Otherwise, ministers of religion are treated the
same as any other employee for the purposes of assessing fringe benefits.
6.6 Current income assessment
This section outlines the current income assessment process for the Parental Income
Test.
• 6.6.1 Assessment based on current tax year
• 6.6.2 Parental current tax year assessment concession (fall in income)
• 6.6.3 Estimated income
• 6.6.4 Approval of estimated income
• 6.6.5 Reverse current income (increase in income).
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6.6.1 Assessment based on current tax year
Assessment may be based on income for the current tax year (i.e. the tax year ending in
the year for which benefits are sought) where either:
• the applicant and their partner (if applicable) being income tested suffer a substantial
and lasting fall in income, and the current tax year assessment is approved (see
6.6.2)
or
• the parental income for the current tax year is more than 25% of the parental income
for the base tax year, and the reverse current income rule is applied (see 6.7.5).
There is no provision for the Parental Income Test to be applied to any period later than
the current tax year.
6.6.2 Current tax year assessment (fall in income)
Current tax year assessment applies where it would be unreasonable to assess eligibility
for Additional Boarding Allowance on the basis of parental income for the base tax year
because:
• the drop in parental income is substantial (see Definition of substantial fall in
income, below)
and
• the drop is likely to last for at least two years from the date of the circumstance
causing hardship or 1 January of the year of study, whichever is the later (see
Duration of fall in income, below).
Circumstances in which a current tax year assessment can be approved
Circumstances in which current tax year assessment may be approved are:
• permanent invalidity, retirement or any similar circumstance that removes or
reduces earning capacity
• drought, bushfire or other circumstance (e.g. flood, cyclone) beyond the person’s
control
• any other circumstances causing hardship.
Loss of an applicant or their partner through death or separation does not warrant
current tax year assessment, unless the remaining applicant also suffers a significant and
sustained fall in income.
Definition of substantial fall in income
Example 34: Retirement causes large fall in income
Mr and Mrs Presley had an income of $45,000 in the normal assessment year. On 30 November in the following tax year, Mr Presley retires. Their income for that year is $12,000 for the period from 1 July to 30 November and
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A substantial drop in parental income
for the period should generally be at
least 25 per cent of the base tax year
income.
Assessors should use discretion when
the drop is less than 25 per cent. Clearly, a smaller drop could have a substantial effect
on the standard of living of people on lower incomes. Also, where the drop occurs late
in the tax year or where the difference in tax year totals is influenced by once-off
income (such as redundancy or termination payments), it may be more substantial than
is immediately apparent when comparing tax year totals and Current Tax Year
assessment can be approved.
Duration of fall in income
The circumstance causing the fall in income must be one that could reasonably be
expected to last for at least two years. Any claim on this basis should be accepted unless
there is evidence to the contrary. However, claims based on seasonal falls in a market
that is subject to short-term fluctuations (e.g. in the case of primary producers) cannot
not be approved unless special circumstances (e.g. expert forecasts of a prolonged
slump) can be demonstrated by the applicant.
Where current tax year assessment has been granted on the expectation that the drop in
income will last at least two years, any subsequent change in circumstances (e.g. an
unemployed parent finding a new job in a shorter time) will not affect the current tax
year assessment unless evidence suggests that the original request was made in bad
faith.
In some cases, changing circumstances might mean an increase in the income on which
the assessment is based. In such cases, a re-estimate of income for the current tax year
may be necessary (see 6.6.3).
Date of effect
If the date of the fall in income is earlier than 1 January of the year in which assistance
is sought, the date of effect for current tax year assessment is 1 January. In this case,
entitlement for the whole eligibility period is assessed on the parental income (see 6.3)
for the current tax year.
If the date of the fall in income is on or after 1 January, the date of effect is the date of
the fall in income. In such a case:
• entitlement for the period of eligibility before the date of the fall is assessed on the
parental income for the base tax year
• entitlement for the period of eligibility from the date of the fall is assessed on the
parental income for the current tax year.
In most cases, the date from which income dropped will be easily established. However,
where income is affected by circumstances such as drought, it will be necessary to
establish an approximate date based on such considerations as the normal arrangements
for marketing products and the period of production to which the income related when
then $175 a week from superannuation for the period from 30 November to 30 June. Although this does not represent a fall of 25% between the tax years, there has clearly been a drastic fall in parental income. Current income assessment may be granted.
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the adverse effect became apparent. If no precise date is available, the date chosen will
be the first day of the most appropriate month.
6.6.3 Estimated income
An estimate of income may be used to determine provisional entitlement and begin
payments. However, actual entitlement remains subject to actual income, so the
applicant’s entitlement will be reassessed as soon as the confirmed income details are
available.
Applicants for this concession should be warned at the outset of the possibility of
overpayments resulting from underestimates of income or from unexpected changes in
circumstances.
Where an applicant has been assessed on an estimate of income in the current tax year,
they should provide acceptable proof of income (see 6.1.3) as soon as possible after the
end of the current tax year.
Where a reassessment is necessary because actual income exceeds the original estimate,
the reassessment should be based on the lower of either:
• the parental income for the current tax year (i.e. the tax year ending in the year for
which benefits are sought)
or
• the parental income for the base tax year (i.e. the tax year ending in the year before
the year for which benefits are sought).
Note: In exceptional cases, the provisions of 6.8 (Waiver of Parental Income Test) or
6.6.5 (Reverse current income assessment) may override this assessment.
Example 35: Drop in income before the allowance year
Marina’s mother is seeking AIC allowances for the year of study. She gave up full-time employment in November of the previous year. Marina’s entitlement to Additional Boarding Allowance for the whole of the year of study is normally assessed on the incomes of both parents for the base tax year but may be assessed on their current tax year income. If Marina’s mother resumes full-time employment during the year of study, assessment may still be made on current tax year income (with a new estimate). However, the original request for current tax year income assessment must have been made in good faith (in the expectation that the drop in income would last at least 2 years), and current tax year income assessment is more advantageous to Marina than the base tax year assessment.
Example 36: Drop in income between 1 January and 30 June of the allowance year
Reid’s father is seeking AIC allowances for the year of study. He retires on 13 February and subsequently receives superannuation. Entitlement to Additional Boarding Allowance up to 12 February is assessed in the normal way on Reid’s parents’ income during the base tax
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6.6.4 Approval of estimated income
The assessor should consider whether
an applicant’s estimate of income is
reasonable. The estimate should take
into account:
• the actual income of the applicant and their partner (where relevant) for the current
tax year income up to the date of the drop in income
• any taxable component of redundancy or separation payouts (e.g. superannuation or
lump sum leave entitlements)
• indexation increases in remaining wages
• anticipated income from the date of the drop until the end of the tax year (including
earnings from casual employment or occasional overtime).
The assessor should be satisfied that the estimate of the size of the drop is reasonable in
the light of available information about such factors as previous earnings and current
employment.
6.6.5 Reverse current income (increase in income)
A ‘reverse current income’ assessment is applied when there is a significant increase in
parental income during the current tax year.
This assessment is applied where the parental income for the current tax year is more
than 25 per cent of the income for the base tax year. However, if the income for the base
tax year is less than the PIFA (see 6.3.2), the income for the current tax year must also
be more than 25 per cent of the PIFA.
Where a reverse current income assessment is called for, the entitlement is reassessed
from 1 October (i.e. base tax year assessment applies for the eligibility period before
then).
If an applicant considers that a reverse current income assessment will be necessary, but
exact income details are not available, a provisional assessment can be based on an
estimate of parental income for the current tax year. When income details for the current
tax year are available, a further reassessment may be necessary if the estimate proves to
be inaccurate.
year. Entitlement from 13 February to 31 December is assessed on his parents’ income for the current tax year (the tax year that ends during the year of study). Should Reid’s father re-enter the workforce, the principles outlined in Example 35 apply.
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Example 37: Income increase below test threshold
Adrian’s father is seeking AIC allowances for the year of study. His entitlement to Additional Boarding Allowances is assessed on the basis of a parental income of $17,000 for the base tax year. During the current tax year (the tax year that ends during the year of study), the parental income increases to $32,000. Reverse current income does not apply, as the current income is not more than 25% higher than the Parental Income Free Area.
Example 38: Expected income not taken into account
Mr Bushell (a sole parent) is receiving maximum Additional Boarding Allowance for his daughter on the basis of his income in the base tax year. During the current tax year, he works on a very important project that requires large amounts of overtime. He resigns on 20 May and receives a substantial lump sum termination payment that is taxable. As Mr Bushell’s current tax year income is more than 25% higher than in the base tax year (and more than 25% of the PIFA), his entitlement must be reassessed using the current tax year. This increased income leaves him eligible for only the Basic Boarding Allowance from 1 October. Mr Bushell is unable to find work and expects to have a substantially lower taxable income for the following tax year. However, this lower income cannot be considered under the Parental Income Test, as there is no provision for income after the current tax year to be taken into account. Mr Bushell receives a Low Income Health Care Card from 11 September, and special assessment applies. From that date, he is again eligible for maximum Additional Boarding Allowance .
6.7 Current AIC Scheme income limits
This section defines the current income limits (the PIFA) used in the Parental Income
Test.
• 6.7.1 Parental Income Free Area
• 6.7.2 Upper Income Limit
• 6.7.3 Effect of other dependent children or students.
6.7.1 Parental Income Free Area
• The PIFA is
• 1 January – 31 December 2008, $31,400
• 1 January – 31 December 2009, $32,800.
• Entitlement is reduced by $1 for every whole $4 of parental income over the PIFA.
• Adjustments for dependent children or students (see 6.3.4) increase the PIFA.
6.7.2 Upper Income Limit
• The Upper Income Limit is
• 1 January – 31 December 2008, $40,055
• 1 January – 31 December 2009, $41,843.
• Adjustments for dependent children or students (see 6.3.4) increase the Upper
Income Limit.
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6.7.3 Effect of other dependent children or students
Both the PIFA and the Upper Income Limit are increased in both 2008 and 2009 by:
• $3,792 for each additional child/student who:
– are aged 16 or over
– is in full-time education (whether or not in an approved course)
– do not qualify as independent under Youth Allowance or ABSTUDY
and
– do not receive a social security or Department of Veterans’ Affairs pension,
benefit or allowance unless it paid for the purposes of study (except where
Family Tax Benefit is payable for a child/student).
Where dependent children are under 16 and eligible for either Boarding Allowance or
Second Home Allowance under the AIC Scheme the PIFA and Upper Income Limit are
also increased. The figures for both 2008 and 2009 are:
• $1,230 for the first other dependent child or student under 16 not included above
• $2,562 for each subsequent dependent child or student under 16 not included above.
6.8 Waiver of the Parental Income Test
This section outlines the reasons and basis for waiving the Parental Income Test.
• 6.8.1 Reasons for waiver
• 6.8.2 Special assessment
• 6.8.3 Duration of special assessment
• 6.8.4 Reassessment after special assessment lapses
6.8.1 Reasons for waiver
The Parental Income Test is waived where:
• special assessment applies (see 6.8.2)
• the applicant or their partner has been directed or authorised by a court, Minister or
government authority to care for the student (away from their natural or adoptive
parents) under a substitute or foster care arrangement (see 6.8.2)
or
• an organisation or institution is the approved applicant (see 6.8.2).
6.8.2 Special assessment
The special assessment concession waives the Parental Income Test for any period
during which the applicant (or their partner) either:
• receives one of the types of financial assistance specified in this section
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• holds certain health care cards
• the student is on certain foster care arrangements
or
• the applicant is an organisation or institution.
In these cases, the income test is not applied to either person’s income and, subject to
boarding costs, the student is entitled to the maximum Additional Boarding Allowance
during the period.
Special assessment as a result of receipt of assistance
Special assessment applies for the period that either the applicant or their partner is
receiving Australian Government assistance through either:
• an income support payment, social security pension/benefit as defined under the
Social Security Act 1991
• a Department of Veterans’ Affairs pension (excluding the Disability Pension)
• the income support component of Farm Help
• Exceptional Circumstances Relief Payment
• the income support component of the New Enterprise Incentive Scheme
• a Textiles, Clothing and Footwear Special Allowance
• Youth Allowance, Austudy or ABSTUDY Living Allowance
• an allowance for full-time vocational training or education
or
• a Community Development Employment Projects (CDEP) wage as a participant (i.e.
the wage is not paid for administering a CDEP).
Special assessment as result of receipt of certain health care cards
Special assessment applies for the period the applicant or their partner holds a certain
valid Australian Government health care cards for low-income earners (including health
care cards issued to families in receipt of the maximum rate of the Family Tax Benefit
Part A).
However, the special assessment concession does not apply either:
• after the expiry date on the card
• where a parent holds a health care card because they receive a social security
Mobility Allowance or Carer Allowance (for a disabled child)
or
• where the applicant or their partner holds only a Pensioner Concession Card or a
Commonwealth Seniors Health Card.
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Parental Income Test — 77
Special assessment because student is in foster care
Subject to their boarding costs, a student in state-authorised care or a foster care
arrangement may receive maximum Additional Boarding Allowance if the foster carer
is not receiving a foster care or similar allowance from a government authority (see
5.2.2 for eligibility and evidence requirements in such circumstances).
In such cases, the applicant is the official foster parent (or their partner), and the
Parental Income Test is waived.
Special assessment where applicant is an organisation or institution
Where an organisation or institution is the approved applicant, the income test is waived
and maximum Additional Boarding Allowance is payable, subject to boarding costs.
6.8.3 Duration of special assessment
Special assessment either:
• begins from 1 January of the year for which assistance is sought or the date the
applicant or their partner begins receiving one of the types of financial assistance or
begins to hold a valid health care card (specified in 6.8.2), whichever is later
• lapses the day that the applicant or their partner ceases to receive that financial
assistance, or when their health care card (specified above) becomes invalid.
Where an applicant or their partner’s Exceptional Circumstances Relief Payment ceases
as a result of drought recovery, they are taken to be receiving a payment under that
program until the end of the year in which payments cease. As a result, special
assessment continues to apply until the end of the calendar year.
6.8.4 Reassessment after special assessment lapses
Where special assessment lapses (see 6.8.3), the Parental Income Test will be applied to
income for the base tax year, unless the conditions for current tax year assessment are
satisfied (see 6.6).
Example 32: Parents reunite after separating during year of study
Joanne’s mother is seeking AIC allowances for the year. Joanne’s parents separate on 1 February. Her mother receives a Parenting Payment (Single) (PPS), and Joanne remains with her. Her parents reunite 7 months later, on 1 September and the PPS ceases.
Assessment basis
1 January – 31 January: base tax year assessment on both parents’ incomes
1 February – 31 August : special assessment (income test waived)
1 September – 31 December: base tax year assessment on both parents’ incomes
Example 33: Parent gains employment
Cameron’s father is seeking AIC allowances for the year. He loses his job on 11 April, and receives Newstart Allowance (NSA). He starts work again on 23 May and his NSA ceases. Cameron’s mother has a part-time job.
Assessment basis
1 January – 10 April: base tax year assessment on both parents’ incomes
11 April – 22 May: special assessment
23 May – 31 December: current tax year or base tax year assessment (special assessment may apply again, if another period of unemployment occurs later in the year and NSA is received)
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7 Administrative information
7.1 The claim assessment process
This section details the assessment process used when a claim is submitted.
• 7.1.1 Initial assessment
• 7.1.2 When a claim can be lodged
• 7.1.3 Who can complete a claim
• 7.1.4 Tax file numbers and exemptions
• 7.1.5 Supporting evidence required
• 7.1.6 Notice of assessment.
7.1.1 Initial assessment
Before a formal decision about assistance can be made by a decision maker, claims
must be:
• fully completed by an approved applicant
• supported by evidence as required
• signed by the applicant
and
• if the applicant has a partner and is applying for the income-tested Additional
Boarding Allowance, signed by the applicant’s partner.
7.1.2 When a claim can be lodged
Claims must be lodged by 31 December of the year for which assistance is sought,
unless Centrelink has recorded an ‘intent to claim’ by that date.
Applicants can register intent to claim by phone, post or fax to Centrelink, or in person.
For the date of that contact to be accepted as the date of claim, and for the claim to be
paid from the earliest possible date, a claim must be received by Centrelink within
13 weeks.
AIC allowances may be paid approved where an incomplete claim is accepted if either:
it is lodged by 31 December, or
intent to claim has been registered by 31 December and the claim is lodged within
13 weeks. However, the applicant will need to supply any missing details before
assessment can be finalised.
Regardless of the circumstances, no allowance is payable if no claim is lodged, or intent
to claim is registered, by 31 December.
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7.1.3 Who can complete a claim
While any person can lodge a claim for AIC allowances, to be eligible for an AIC
allowance, the person must be an approved applicant (see 2.1).
7.1.4 Tax file numbers and exemptions
Section 44A of the Act specifies that no benefit will be payable unless:
• the applicant’s Tax File Number (TFN) is provided
• if the applicant has a partner whose income is taken into account in calculating the
Additional Boarding Allowance, the TFN of the applicant’s partner is also provided.
If a person does not have or cannot provide their TFN, a ‘TFN Application/Enquiry
Form’ can be lodged with Centrelink with appropriate proof of identity as required by
the Australian Taxation Office. If this is done, the person is regarded as having supplied
TFN details.
An applicant or their partner is exempt from providing a TFN where:
• they receive a social security or Department of Veterans’ Affairs pension or benefit
• a charitable organisation is applying on behalf of a student (a tax-exempt TFN
should be supplied if possible)
• the death of the applicant or their partner makes their TFN details irrelevant to the
student’s eligibility
• the physical safety of the applicant or their partner is at risk from another person,
and disclosing the TFN could increase the risk
or
• they are resident outside Australia and have no assessable income under the Income
Tax Assessment Act 1936 for the period of the income test.
A temporary exemption also applies where the applicant or their partner:
• has lost all records of their TFN because of fire or flood damage to their home in the
6 months before the claim (this exemption ceases 6 months after the damage
occurred)
• is an Aboriginal or Torres Strait Islander who is attending a traditional ceremony at
the time of the claim lodgement (a TFN must be provided on their return)
or
• is temporarily overseas (a TFN must be provided on their return).
Note: The applicant’s partner must provide a TFN only where their income is to be
taken into account to calculate the rate of Additional Boarding Allowance. This means
that they are not required to provide a TFN where special assessment applies (see 6.8.2).
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7.1.5 Supporting evidence required
Supporting evidence is required under particular circumstances:
• Where this is the first AIC Scheme claim lodged for the student, proof of the
student’s age is required, unless Family Tax Benefit, Maternity Payment or Child
Care Benefit has been paid for them.
• Where either the applicant or the student is not an Australian citizen, evidence of
permanent residency and/or settlement is required.
• Where the student is isolated from schooling for reasons other than distance or
travel time, the applicant may need to provide evidence to support the claim that the
local state school is inappropriate (see Section 4 for specific requirements).
• Where the claim is for the income-tested Additional Boarding Allowance, proof of
income may be required (see Section 6).
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7.1.6 Notice of assessment
In response to receipt of an AIC Scheme claim, Centrelink will send a written notice of
the decision, outlining the outcome of the assessment and, if applicable, providing
details of entitlement. Where the applicant or student is ineligible for assistance under
the scheme, the reason for ineligibility and information about appeal rights will be
provided (see 7.3 for information about reviews and appeals).
7.2 Applicant’s rights and obligations
This section details the rights and obligations of an applicant when an AIC Scheme
claim is submitted.
• 7.2.1 Obligations
• 7.2.2 Rights to privacy and confidentiality
• 7.2.3 Use of information by government.
7.2.1 Obligations
By signing the claim or accepting a payment, the applicant agrees to provide correct
information, to notify Centrelink of particular events, and to repay any overpayment.
Supply correct information
Giving false or misleading information is a serious offence. Applicants or their partners
who do so may be prosecuted under the Criminal Code.
Notify prescribed events
Some events can affect eligibility for AIC allowances. The following prescribed events
are defined in the Student Assistance Regulations 2003. If any of them occurs, the
person who is receiving or entitled to receive payment must notify Centrelink within
14 days.
• The student either:
– does not enrol at the school or distance education course to which the allowance
relates by the end of the enrolment period
– does not begin school or the distance education course within the first 2 weeks
after the first day on which the course is offered, or on the day on which the
student commences boarding
– discontinues the education to which the allowance relates
– has their enrolment cancelled by the education institution
– begins to receive a benefit for education or vocational training from the
Australian Government or an Australian Government authority
– begins to receive ABSTUDY, Youth Allowance, sickness allowance or special
benefit mentioned in Chapter 2 of the Social Security Act
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– begins a full-time apprenticeship or traineeship
– is taken into lawful custody
– changes the address of their place of residence or permanent home
– is the subject of a change in foster care arrangements
– moves from one parent’s residence to the other parent’s residence as a result of
the parents’ divorce or separation
– is the subject of a change to the arrangements for travel to and from the principal
family home to the school
– ceases to board away from home, or live in a second family home, while
undertaking study
– ceases to be an Australian citizen
– ceases to be an Australian permanent resident under the Migration Regulations
1994
– ceases to be the holder of a special category visa under the Migration Act 1958
– ceases to be the holder of a special purpose visa under the Migration Act
– is the subject of a variation of the amount of boarding costs for which an amount
under the AIC Scheme is being claimed
or
– dies.
• The geographical isolation reason for which an amount under the AIC Scheme was
granted ceases to apply.
• A person either:
– becomes or ceases to be a parent of the student to whom the amount relates
or
– becomes or ceases to be the partner of the student’s parent
• The parent of the student to whom the amount relates either:
– is taken into lawful custody
– is admitted to a psychiatric institution
– ceases to be an Australian citizen
– ceases to be an Australian permanent resident under the Migration Regulations
1994
– ceases to be the holder of a special category visa under the Migration Act
– ceases to be the holder of a special purpose visa under the Migration Act
– begins to receive rent assistance under the Social Security Act while receiving a
Second Home Allowance under the AIC Scheme
– earns income that exceeds the most recent estimate of income given to
Centrelink
– becomes responsible for fewer dependent children than when the claim was
lodged or the last notification of the number such children was given to
Centrelink
or
– the income of the parent’s partner varies from the most recent assessment of
income given to Centrelink.
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Failure to notify Centrelink of any occurrence of a prescribed event may contravene the
Act, which specifies a penalty of imprisonment of up to 12 months. Failure to notify
may also be prosecuted under the Criminal Code, which carries a penalty of 5 years
imprisonment.
Repay money
Recipients must repay money that they have received as a result of an overpayment (see
7.3.3).
7.2.2 Rights to privacy and confidentiality
Privacy
DEEWR and Centrelink are bound by the Privacy Act 1988, which contains Information
Privacy Principles (IPPs) that prescribe the rules for the handling of personal
information by government agencies.
The Privacy Act defines ‘personal information’ as information or an opinion (whether
true or false) about an individual whose identity is apparent or can reasonably be
worked out from the information or opinion.
DEEWR and Centrelink will ensure that:
• personal information is collected in accordance with IPPs 1–3
• suitable storage arrangements, including appropriate filing procedures, are in place
• suitable security arrangements exist for all records containing personal information
• access to a person’s own personal information held by the organisation is made
available to them at no charge
• records are accurate, up to date, complete and not misleading
• where a record is found to be inaccurate, it is corrected
• where the person contends that a record is inaccurate but it is found to be correct,
the details of the request for amendment are noted on the record
• personal information is only used for the purposes for which it was collected, or for
other purposes expressly allowed by IPP 10
• personal information is only disclosed in accordance with IPP 11
and
• any collection, storage, security, use or disclosure of Tax File Numbers complies
with the Privacy Commissioner’s Tax File Number Guidelines 1992.
Privacy Complaints and Advice
Complaints about breaches of privacy and requests for advice about privacy should be
referred to the Privacy Contact Officer in the Litigation and External Review Section of
the Procurement, Assurance and Legal Group, at DEEWR’s National Office. Privacy
Complaints may be emailed to [email protected] Privacy complaints can be made
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Administrative information — 85
directly to the Federal Privacy Commissioner; however, the Federal Privacy
Commissioner prefers that the Department be given an opportunity to deal with the
complaint in the first instance.
Confidentiality
Provisions in the Act govern the confidentiality of information obtained to administer
the AIC Scheme. These provisions prohibit unauthorised access to, use and disclosure
of protected information, which is defined in the Act.
Protected information can only be accessed, used or disclosed in accordance with the
Act. Such circumstances may include, but are not limited to, situations in which the
access, use or disclosure either:
• has been consented to by the applicant or a person authorised by them
• is for the purposes of the Act, or other specified Acts relating to child support
• is in accordance with ministerial guidelines made under the Act, which provide for
disclosures in the public interest
or
• is in accordance with the Chief Executive Officer’s Instrument that provides for
disclosure to other Australian Government departments or authorities.
Unauthorised access to, use of or disclosure of protected information is an offence
punishable on conviction by imprisonment.
7.2.3 Use of information by government
Compliance investigations
Any information given by the applicant may be checked with third parties, where its
accuracy is relevant to eligibility. This includes checking school enrolment and study
details with state or territory education authorities and travel details with school
transport authorities, local governments and bus contractors.
Centrelink may contact applicants during the year to check on changes of circumstances
that could affect eligibility for AIC allowances. Additional special purpose checks are
conducted from time to time to investigate specific eligibility and entitlement aspects in
more detail.
Data-matching program
Under the Data-Matching Program (Taxation and Assistance) Act 1990, information
provided to claim an AIC allowance may be checked against information held by other
Australian Government agencies to prevent fraud and duplication of payments. These
agencies include:
• Australian Taxation Office
• DEEWR
• Department of Families, Community Services and Indigenous Affairs
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• Department of Veterans’ Affairs
• Department of Health and Ageing.
Freedom of information requests
All documents created or held by Centrelink and DEEWR connected with the
AIC Scheme are subject to the Freedom of Information Act 1982. Unless a document
falls under an exemption provision, it will be made available to the general public if
requested under that Act.
Under the DEEWR–Centrelink Business Partnership Agreement, Centrelink and
DEEWR are responsible for managing their own obligations under the relevant
legislation concerning Freedom of Information requests. DEEWR and Centrelink must
provide each other a copy of any FOI request if it relates to the administration of the
AIC Scheme.
All FOI requests received by DEEWR are to be referred immediately to the Freedom of
Information Coordinator in the Litigation and External Review Section of the
Procurement, Assurance and Legal Group, in the Department’s National Office.
Decisions regarding requests for access will be made by DEEWR’s authorised
decision-maker in accordance with the requirements of the FOI Act.
FOI requests for Centrelink information can be made at any Centrelink Office. Further
information on Centrelink processes can be found at
www.centrelink.gov.au/internet/internet.nsf/legal/FOI.htm
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7.3 Reviews and appeals
This section outlines the review and appeals processes available to the AIC Scheme
applicant.
• 7.3.1 Assessments, reassessments and reviews
• 7.3.2 Appeals about assessments or eligibility
• 7.3.3 Recovery of debt.
7.3.1 Assessments, reassessments and reviews
In assessments, reassessments and reviews, the decision maker must use the principles
and requirements in these guidelines.
Assessments
The decision maker must not be biased, and the applicant must be given a fair chance to
put their case before a decision is made.
For an assessment, these requirements are satisfied by:
• allowing the applicant to provide all relevant information on the claim
• giving the applicant an opportunity to comment, if evidence other than that provided
by them is taken into account
and
• ensuring that a notice of decision to the applicant includes reasons for the decision
and information about appeals and internal reviews.
Reassessments
At any time, a claim may be reassessed and entitlement recalculated on the basis of
additional information or evidence provided to Centrelink.
Applicant’s right of review
If an applicant disagrees with a decision about their assessment (or reassessment) and
believes that the policy for the AIC Scheme has not been applied correctly, they or their
agent can ask for an internal review of the decision. The request must be made to
Centrelink by telephone, at a Centrelink office, or in writing.
Internal review of assessment decisions
For internal reviews or appeals, a review officer must consider an applicant’s request for
a review of the matter. The applicant should be invited to put their case in writing.
In an internal review, the review officer must either:
• affirm the decision
• vary the decision
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or
• set the decision aside and substitute a new decision.
The review officer must give the applicant a written notice of the decision that includes
an explanation of the original decision and:
• sets out the reasons for the decision
• sets out the findings on material questions of fact
and
• refers to the evidence or other material on which those findings were based.
The notice must also advise the applicant that they may appeal against the decision to
the Minister responsible for the AIC Scheme.
If the original assessment (or reassessment) decision is varied, any benefit withheld and
now payable is to be paid retrospectively from the relevant effective date.
7.3.2 Appeals about assessments of eligibility and/or entitlement
Appeals to the Minister
If the applicant continues to disagree with a decision by a review officer, they or their
agent can appeal in writing to the Minister.
The Minister must consider all relevant circumstances of the appeal, including any new
matters raised by the applicant. Relevant factors include:
• the financial implications for the Australian Government if access to the
AIC Scheme is granted
• whether granting access to the scheme would contravene any other government
decision or requirement.
Appeals to the Social Security Appeals Tribunal and the Administrative Appeals
Tribunal
A decision by the Minister relating to eligibility of payment cannot be appealed to the
Social Security Appeals Tribunal (SSAT) or the Administrative Appeals Tribunal
(AAT).
However, a dissatisfied applicant may still seek a judicial review of an assessment
decision by applying directly to the Federal Court or the High Court (see 7.3.3).
7.3.3 Recovery of debt
Government’s right to recover debt
Under the Act, recovery action may be taken where an overpayment has been made.
The power to make decisions about debt recovery is delegated to certain Centrelink
officers.
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Any person affected by a decision made under the Act can ask for an internal review of
that decision.
Types of debt recovery decisions
Decisions about recovering a debt include:
• calculation of debts
• imposing late payment charges and/or interest
• allowing payment of debt by instalments
• writing off a debt
• waiving the right to recover a debt.
Debt recovery after an unsuccessful appeal
Where an applicant appeals to the Minister about an assessment decision that resulted in
a debt and the appeal is not upheld, a review officer will review the debt recovery
decision. This means the applicant or their agent does not have to lodge a formal request
for an internal review of the debt recovery decision.
The outcome of this review will be notified in writing by Centrelink to the applicant.
Internal review of debt recovery decisions
An applicant who is dissatisfied with a debt recovery decision can apply for an internal
review of the decision by telephone, in writing or in person at a Centrelink office.
The debt recovery decision is not subject to review by the Minister.
The review officer must give the applicant a written notice of the decision that includes
an explanation of the original decision and:
• sets out the reasons for the decision
• sets out the findings on material questions of fact
and
• refers to the evidence or other material on which those findings were based.
The notice must also advise the applicant that they may appeal against the decision to
the SSAT.
Appeals to the Social Security Appeals Tribunal and the Administrative Appeals
Tribunal about debt recovery
If the applicant receives an unfavourable decision from the internal review, they can
seek an independent review by the SSAT.
The applicant has three months after the day on which the review decision was made to
lodge an appeal with the SSAT (if there are special circumstances, Centrelink may
extend the deadline).
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If the applicant is dissatisfied with the decision of the SSAT, they may appeal that
decision to the AAT.
Appeals to the SSAT or the AAT may be lodged directly with the tribunals or through
Centrelink.
Appeals to the Federal Court about debt recovery
If the applicant disagrees with a debt recovery decision, they may appeal to the Federal
Court on a matter of law. When reviewing the legality of debt administration, the
Federal Court can vary or set aside a decision, or substitute a new decision.
Waiver of the right to recover a debt
Under the Act, the DEEWR Secretary, or their delegate, can waive the Australian
Government’s right to recover a debt or write off the debt, in whole or in part, including
in cases:
• of administrative error by Centrelink, where this is the sole cause of the
overpayment, as long as the person received the payments in good faith (this only
applies where the debt was not raised within six weeks from the first payment that
caused the debt or within six weeks of the person notifying Centrelink of a change
in circumstance that affected their entitlement)
• where a person has been convicted of an offence that gave rise to some or all of the
debt and the court has imposed a larger custodial sentence on the person because
they were unwilling or unable to pay the debt
• where the debt is less than $50 and it is not cost-effective for the Commonwealth to
take action to recover it
• where part of a debt has been repaid
• where special circumstances (other than financial hardship alone) make it better to
waive recovery than to write off the debt and the person or another person has not
knowingly provided false information or failed to comply with a provision of the
Act, and the resulting non-compliance gave rise to the debt.
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7.4 Roles and responsibilities for administration of the scheme
DEEWR is responsible for AIC Scheme policy. Policy changes are approved by the
Minister.
The Minister has authority to review all AIC Scheme assessment decisions (see 7.3.2).
Reviews can result in recommendations for policy changes.
Centrelink administers the scheme under the 2005–2008 DEEWR–Centrelink Business
Partnership Agreement. Centrelink conducts assessments, processes claims and makes
payments.
Under the Act, the DEEWR Secretary is responsible for general administration of AIC
Scheme, subject to directions from the Minister. The Secretary has delegated all of their
powers relating to the administration of the AIC Scheme to the Centrelink Chief
Executive Officer (CEO). The Centrelink CEO has subsequently conferred these
powers onto certain Centrelink officers.
Under the Financial Management and Accountability Act 1997, the DEEWR Secretary
has delegated to the Centrelink CEO the power to approve, cancel, vary or suspend
proposals for expenditure of AIC Scheme funds. The Centrelink CEO has subsequently
conferred these powers on certain Centrelink officers.
The AIC Scheme guidelines are updated once a year. Changes are published on
DEEWR’s website and provided to Centrelink in writing.
Where the Minister approves a change to the guidelines (e.g. as a result of an appeal),
that change should be taken into account in all current and later cases, including internal
reviews of assessment decisions (see 7.3.1) and appeals to the Minister about
assessment decisions (see 7.3.2).
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Appendix A: Changes to the AIC Scheme Guidelines
The AIC Scheme Guidelines have been significantly reworded from the 2007
guidelines. These changes do not alter policy intent but remove duplication and reword
policy into ‘plain English’. Where notable changes have occurred, they are detailed
below. These guidelines shall take effect from 1 January 2008.
Significant Policy changes
1. From 1 January 2008, the Distance Education Allowance Supplement was
introduced:
Eligibility provisions See 5.4
Payability provisions See 5.6.4.
2. Authority to decide appeals about assessments or eligibility and/or entitlement have
now been directed to the Minister to reflect changed administrative arrangements in the
management of the Scheme.
Reference to similar policy contained in the 2007 AIC Guidelines
The table below provides section numbers for both the old and the new format.
2007 Guidelines Guidelines (from 2008)
1 General 1 General Information about the AIC Scheme
1.1 Definitions for these Guidelines Definitions for these Guidelines
1.2 Outline of the AIC Scheme 1.1 Description of the Scheme
1.2.1 Objectives of the AIC Scheme 1.2 Objectives
1.2.2 Who can get AIC Allowances 1.3 Eligibility
1.2.3 Types of AIC Allowances 1.4 Types of allowances
1.2.4 Legislative Basis of the AIC Scheme 1.5 Legislative basis
1.2.5 Roles and Responsibilities for administration of the AIC Scheme
7.4 Roles and responsibilities for administration of the scheme
1.3 Assessment Process 7.1 The claim assessment process
1.3.1 Claims and initial assessment 7.1.1 initial assessment
7.3.1 Assessments, reassessments and reviews
1.3.2 When can a Claim be lodged 7.1.2 When a claim can be lodged
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1.3.3 Who can complete a claim 7.1.3 Who can complete a claim
1.3.4 Tax File Numbers 7.1.4 Tax file numbers and exemptions
1.3.5 TFN Exemptions
1.3.6 Supporting evidence required 7.1.5 Supporting evidence required
1.3.7 Notice of assessment 7.1.6 Notice of assessment
1.4 Applicant Rights and Obligations 7.2 Applicant’s rights and obligations
1.4.1 Applicant obligations 7.2.1 Obligations
1.4.2 Prescribed events
1.4.3 Correct information
1.4.4 Privacy 7.2.2 Rights to privacy and confidentiality
1.4.5 Confidentiality
1.4.6 Compliance activities 7.2.3 Use of information by government
1.4.7 Data matching Program
1.4.8 Freedom of information
1.5 Reviews and Appeals 7.3 Reviews and appeals
1.5.1 Claim Assessment 7.3.1 Assessments, reassessments and reviews
1.5.2 Applicant’s right of review of assessment decisions
1.5.3 Internal review of assessment decisions
1.5.4 Appeals to the Parliamentary Secretary (regarding assessment decisions)
7.3.2 Appeals about assessments of eligibility and/or entitlement
1.5.5 Appeals to the Social Security Appeals Tribunal (SSAT) and the Administrative Appeals Tribunal (AAT) regarding AIC Scheme eligibility
1.5.6 Debt recovery following unsuccessful appeal
7.3.3 Recovery of debt
1.5.7 Recovery of debt
1.5.8 Types of debt recovery decisions
1.5.9 Review of debt recovery decisions
1.5.10 Appeals to the Federal Court (regarding debt administration)
1.5.11 Waiver of the right to recover a debt
2 Applicant Eligibility 2. Applicant Eligibility
2.1 Who can be the Applicant 2.1 Requirements for applicants
2.1.1 Who can be an Approved applicant 2.1.1 Applicants who can be approved
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2.1.2 Who cannot be an Approved applicant 2.1.2 Applicants who cannot be approved
2.1.3 Student lives with Parent(s) 2.1.3 Parents as applicants
2.1.4 Student lives with one parent
2.1.5 Student lives with each parent separately
2.1.6 Matters to consider when there is a dispute over who should be the Approved applicant
2.1.7 Only one claim per student can be accepted
2.1.7 Only one claim per student can be accepted
2.1.8 New Claim required when Approved applicant changes
2.1.8 New claim required when applicant changes
2.1.9 Applicant who is not a Parent or the parent’s partner
2.1.4 Non-parents as applicants
2.1.10 Organisations or institutions as Approved applicants
2.1.5 Organisations or institutions as applicants
2.1.11 Determining whether an organisation/institution has full responsibility for a student
2.1.12 Claims received from Parent and from organisation/institution
2.1.6 Claims received from a parent and from an organisation
2.2 Residence Requirements for Approved applicants
2.2 Residency requirements for applicants
2.2.1 Citizenship or permanent residency 2.2.1 Australian citizenship or permanent residency
2.2.2 New Zealand citizens 2.2.2 New Zealand citizenship and permanent settlement in Australia
2.2.3 Indicators that applicant is not Permanently Settled
2.2.4 Applicant must normally live in Australia 2.2.3 Applicant must normally live in Australia
2.3 The effect of other Australian Government Assistance on an Applicant’s eligibility
3.5 Effect of other Australian Government payments on eligibility
2.3.1 Australian Government payments that do not affect eligibility
3.5.1 Payments that do not exclude eligibility
2.3.2 Other Australian Government assistance affecting level of entitlement
3.5.2 Payments that affect the level of entitlement
2.3.3 Australian Government payments which exclude eligibility to the AIC Scheme
3.5.3 Payments that exclude eligibility
2.4 Death of Approved Applicant 2.3 Death of an applicant
2.4.1 Where there is more than one Approved applicant
2.3.1 When there is more than one applicant
2.4.2 Where there is only one Approved 2.3.2 Where there is only one applicant
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applicant
2.4.3 Payments due in the event of the Approved applicant’s death
2.3.3 Payments around the date of death
3 Student Eligibility 3 Student Eligibility
3.1 Overview of student eligibility conditions 3.1 Overview of student eligibility
3.2 Citizenship of Residency 3.2 Residency requirements for students
3.2.1 Citizenship or residency 3.2.1 Australian citizenship or permanent residency
3.2.2 New Zealand Citizens 3.2.2 New Zealand citizenship and permanent settlement in Australia
3.2.3 Student must live in Australia during the period of study
3.2.3 Students must live in Australia during the period of study
3.2.4 International student exchange 3.2.4 International student exchange
3.3 Age Limits 3.3 Age Limits
3.3.1 Age limits 3.3.1 Age Limits
3.3.2 Extension to age limit 3.3.2 Extension to age limits in special circumstances
3.4 Approved Studies 3.4 Approved studies
3.4.1 Approved studies
3.4.2 Full-time study load 3.4.1 Full-Time study load
3.4.3 Approved institution 3.4.2 Approved institution
3.4.4 Approved course 3.4.3 Approved course
3.4.5 Approved level of study 3.4.4 Approved level of study
3.4.6 Previous studies 3.4.5 Effect of previous studies on AIC allowance eligibility
3.5 The effect of other Australian Government Assistance on student eligibility
3.5 Effect of other Australian Government payments on eligibility
3.5.1 Payments which exclude eligibility for the AIC Scheme
3.5.3 Payments that exclude eligibility
3.5.2 Australian Government payments which do not exclude eligibility for the AIC Scheme
3.5.1 Payments that do not exclude eligibility
3.5.3 Other education or training assistance
3.5.4 Choice between the AIC Scheme, Youth Allowance or ABSTUDY
3.5.3 Payments that exclude eligibility
3.6 Students in Lawful Custody or State Authorised Care
3.6 Students in lawful custody or state-authorised care
3.6.1 Students in Lawful Custody
3.6.2 Eligibility for students in State Authorised
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Care
3.7 Period of Eligibility 3.7 Eligibility period
3.7.1 Short-term boarders 3.7.1 Eligibility commencement dates
3.7.2 Eligibility commences on 1 January
3.7.3 Eligibility commences after 1 January
3.7.4 Concession for late start
3.7.5 Eligibility for any vacation during the year 3.7.2 Eligibility for vacations
3.7.6 Allowance type changes 3.7.3 Usual date for cessation of eligibility
3.7.7 Cessation of eligibility
3.7.8 Term in advance payments
3.7.9 Discontinuation date for students studying by distance education methods
3.8 Death of Student 3.8 Death of student
3.8.1 Payments in the event of the student’s death
4 Isolation Conditions 4 Isolation conditions and special needs
4.1 Isolation Conditions – Summary and definitions
4.1 Summary and definitions
4.1.1 Reasonable daily access 4.1.1 Reasonable daily access
4.1.2 Nearest Appropriate state school 4.1.2 Nearest appropriate state school
4.1.3 Nearest appropriate state school – several schools within 56 kilometres
4.1.4 Nearest Appropriate state school – tertiary student
4.1.5 Nearest appropriate state school – Principal family home near border
4.1.6 Limited program school 4.1.3 Limited program schools
4.2 Geographic Isolation Rules 4.2 Geographical isolation rules
4.2.1 Summary of geographic isolation rules 4.2.1 Summary of rules
4.2.2 Evidence requirements for geographic isolation
4.2.2 Applying Rules 1 and 2 (distance to school)
4.2.3 Rule 1 and Rule 2 - Measuring distance to school
4.2.4 Rule 1 and 2 - Nearest available transport service
4.2.5 Rule 3 - Student does not have reasonable access to school
4.2.3 Applying Rule 3 (reasonable access)
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4.2.6 Rule 3 - Measuring travel time
4.2.7 Rule 3 - Conditions affecting access to school
4.2.8 Rule 3 - Alternating transport services
4.2.9 Rule 3 - Circumstances beyond the family’s control
4.2.10 Rule 3 - Evidence student does not have reasonable access to school
4.2.11 Rule 3 - Special weather conditions and likelihood of school absence
4.2.12 Rule 3 – Impassable roads – evidence that attendance is likely to be adversely affected
4.2.13 Rule 3 – Continuation of an AIC Scheme Allowance
4.4.5 Continuity and concessions
4.2.14 Rule 3 – Change in circumstances during the year
4.2.15 Rule 3 – Evidence of non-access to private transport
4.2.3 Applying Rule 3 (reasonable access)
4.2.16 Rule 3 – Conditions in year of assistance concession
4.4.5 Continuity and concessions
4.3 Students with Special Needs 4.3 Students with special needs
4.3.1 Students with special needs – summary 4.3.1 Summary
4.3.2 Definition of a disability or health related condition
4.3.2 Definition of a disability or other health related condition
4.3.3 Evidence requirements for special needs 4.3.3 Evidence requirements
4.3.4 Duration of special need assessment 4.3.4 Duration of special need assessment
4.3.5 Student attends a special school 4.3.5 Types of special needs
4.3.6 Student needs access to special facilities or a special environment
4.3.7 Student needs to study away from home
4.3.8 Student needs to be removed from local school environment
4.3.9 Student needs testing/remediation for a learning disability
4.3.10 Student needs specialist remedial tuition
4.3.11 Student would suffer serious educational disadvantage if not able to bypass local school
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4.4 Students Deemed to be Isolated 4.4 Students deemed to be isolated
4.4.1 Student lives in a specialist institution 4.4.1 Student lives in a special institution
4.4.2 Occupation of a student’s patent(s) involves frequent moves
4.4.2 Parental occupation involves frequent moves
4.4.3 Student lives in a Second family home with a sibling who meets a geographic isolation rule
4.4.3 Student and sibling live in a second family home
4.4.4 Condition of schooling concession 4.4.5 Continuity and concessions
4.4.5 Retrospective continuity of schooling concession
4.4.6 Student whose sole parent’s occupation requires frequent overnight absences
4.4.4 Students whose sole parent’s occupation requires frequent overnight absences
5 AIC Scheme Allowances 5 AIC allowances
5.1 General Entitlement and Payment Features
5.1 General entitlement and payment features
5.1.1 Determination of allowance 5.1.1 Which allowances apply
5.1.2 Determination of allowance for students living away from home and studying by distance education methods
5.1.3 Amount of entitlement 5.1.2 Calculation of amount of entitlement
5.1.4 Minimum payment
5.1.5 Payment frequency – term instalments 5.1.3 Payment frequency
5.1.6 Payment frequency – fortnightly instalments
5.1.7 Payment frequency – Short-term borders
5.1.8 Term instalments – four-term States and Territories
5.1.4 Term instalment periods
5.1.9 Term instalments – three-term states
5.1.10 Calculation of term payments
5.1.11 Taxation of allowances 5.1.5 Taxation of allowances
5.1.12 Payee for allowance 5.1.6 Payee for allowances
5.2 Boarding Allowance and Additional Boarding Allowance
5.2 Boarding allowances
5.2.1 Purpose of Boarding Allowance 5.2.1 Basic Boarding Allowance
5.2.2 Components of Boarding Allowance 5.2 Boarding allowances
5.2.3 Eligibility for Additional Boarding Allowance
5.2.1 Basic Boarding Allowance
5.2.4 Approved boarding arrangement
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5.2.5 Eligibility for Additional Boarding Allowance
5.2.2 Additional Boarding Allowance
5.2.6 Students in foster care 3.5.2 Payments that affect the level of entitlement
5.2.2 Additional Boarding Allowance
5.2.7 Boarding Costs 5.2.2 Additional Boarding Allowance
5.2.8 Actual boarding charges 5.2.3 Actual boarding charges
5.2.9 Boarding fees paid by another party
5.2.10 Additional Boarding Allowance entitlement
5.2.2 Additional Boarding Allowance
5.2.11 Maximum rates of entitlement 5.2.1 Basic Boarding Allowance
5.2.2 Additional Boarding Allowance
5.2.12 Entitlement for part time boarders 5.2.5 Part-time boarders
5.2.13 Entitlement for Short-term boarders 5.2.6 Short-term boarders
5.3 Second Home Allowance 5.3 Second Home Allowance
5.3.1 Purpose of Second Home Allowance 5.3.1 Purpose
5.3.2 Eligibility for Second Home Allowance 5.3.2 Eligibility
5.3.3 Approved Second family home 5.3.3 Approved second family home
5.3.4 Parent temporarily employed in isolated area
5.3.4 Parent temporarily employed in isolated area
5.3.5 Loss of Parent situations 5.3.5 Loss of a parent
5.3.6 Students eligible for Second Home Allowance where no Parent normally lives at the principal family home
5.3.6 Eligibility where no parent normally lives at a principal family home
5.3.7 Rate of entitlement 5.3 Second Home Allowance
5.3.7 Pro-rata entitlement
5.3.8 Maximum annual entitlement per family 5.3.8 Maximum annual entitlement per family
5.4 Distance Education Allowance 5.4 Distance Education allowances
5.4.1 Purpose of Distance Education Allowance
5.4.1 Purpose
5.4.2 Eligibility for Distance Education Allowance
5.4.2 Eligibility
5.4.3 Acceptable study location 5.4.3 Acceptable study locations
5.4.4 Home tuition 5.4.4 Home tuition
5.4.5 Rate of entitlement 5.4 Distance Education allowances
5.5 Pensioner Education Supplement 5.5 Pensioner Education Supplement
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5.5.1 Purpose of the Pensioner Education Supplement
5.5.1 Purpose
5.5.2 Eligibility for PES 5.5.2 Eligibility
5.5.3 Secondary and tertiary students
5.5.4 Rate of entitlement 5.5 Pensioner Education Supplement
5.6 Current AIC Scheme Allowance Rate 5.6 Current AIC allowance rates
5.6.1 When Additional Boarding Allowance is payable
5.6.2 Additional Boarding Allowance
5.6.2 When the maximum rate of Additional Boarding Allowance is payable
5.6.3 Boarding Allowance maximum rates of entitlement
5.6.1 Boarding Allowances
5.6.4 Second Home Allowance 5.6.3 Second Home Allowance
5.6.5 Distance Education Allowance rates of entitlement
5.6.4 Distance Education allowances
5.6.6 Pensioner Education Supplement rate of entitlement
5.6.5 Pensioner Education Supplement
6 The Parental Income Test 6 The Parental Income Test
6.1 Overview of the Parental Income Test 6.1 Overview
6.1.1 Application of the Parental Income Test 6.1.1 Purpose and application
6.1.2 Normal assessment on previous tax year 6.1.2 Tax year used for assessment
6.1.3 Different tax year
6.1.4 Proof of income 6.1.3 Proof of income
6.2 Calculating Parental Income 6.3 Calculating parental income
6.2.1 Parental income 6.1.1 Purpose and application
6.2.2 Calculating parental income 6.3.1 Basic calculation
6.2.3 Parental Income Free Area (PIFA) 6.3.2 Parental Income Free Area
6.2.4 Effect of PIFA on Additional Boarding Allowance entitlement
6.7.1 Parental Income Free Area
6.2.5 Upper Income Limit 6.3.3 Upper Income Limit
6.2.6 Effect of Upper Income Limit on Additional Boarding Allowance entitlement
5.2.2 Additional Boarding Allowance
6.2.7 How dependent child/student affects the PIFA and Upper Income Limit
6.3.4 Other dependent children or students
6.2.8 Dependent child/student
6.2.9 Children/students who do not increase the PIFA and Upper Income Limit
6.2.10 Changes in the number of dependent
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children/students
6.2.11 Maintenance payments 6.3.5 Maintenance payments
6.2.12 Textiles, Clothing and Footwear (TCF) Special Allowance
6.3.6 Textiles Clothing and Footwear Special Allowance
6.2.13 Effect of negative income 6.3.7 Treatment of negative income
6.2.14 Income averaging not permitted 6.3.8 Income averaging not permitted
6.2.15 Income earned or received from overseas
6.3.9 Income earned or received from overseas
6.2.16 Converting overseas income and fringe benefits to Australian amounts
6.3 Whose Income is taken into Account? 6.2 Whose income is taken into account?
6.3.1 Applicant and Partner usually income tested
6.2.1 Applicant and partner
6.3.2 Situations where income test not applied to applicant and partner
6.3.3 Circumstances where separated or divorced parents both income tested
6.2.2 Separated or divorced parents
6.3.4 Circumstances where applicants new Partner is income tested
6.2.3 Applicant’s new partner
6.3.5 Loss or change of applicant/applicant’s Partner during the year of study
6.2.4 Loss or change of applicant or partner during the year of study
6.3.6 Incomplete information about income 6.1.3 Proof of income
6.4 Waiver of the Parental Income Test 6.8 Waiver of the Parental Income Test
6.4.1 Reasons parental income test waived 6.8.1 Reasons for waiver
6.4.2 Special assessment 6.8.2 Special assessment
6.4.3 Circumstances where special assessment applies
6.4.4 Special assessment – concession cards
6.4.5 Basis for special assessment – CDEP
6.4.6 Duration of special assessment 6.8.3 Duration of special assessment
6.4.7 Special assessment lapses – reassessment on parental income
6.8.4 Reassessment after special assessment lapses
6.4.8 Student in foster care 6.8.2 Special assessment
6.4.9 Applicant is an organisation/institution
6.5 Negative gearing 6.4 Negative gearing
6.5.1 Introduction to negative gearing 6.4.1 Effect of negative gearing
6.5.2 Definition of rental property 6.4.2 Definitions
6.5.3 Definition of passive income earning
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investment
6.5.4 Valuing rental property losses 6.4.3 Valuing rental property losses
6.5.5 Self declaration 6.4.4 Self-declaration and compliance checks
6.5.6 Compliance
6.6 Fringe Benefits 6.5 Fringe benefits
6.6.1 Introduction to fringe benefits 6.5.1 Definitions
6.5.2 Types of benefits to be included
6.6.2 Valuing fringe benefits 6.5.3 Valuing fringe benefits
6.6.3 First $1,000 of reportable fringe benefits exempt
6.5.4 First $1,000 of reportable fringe benefits exempt
6.6.4 Fringe benefits tax accounting period 6.5.3 Valuing fringe benefits
6.6.5 Overseas fringe benefits 6.5.5 Overseas fringe benefits
6.6.6 Types of benefits to be included 6.5.1 Definitions
6.6.7 Exclusion of fringe benefits from assessment
6.5.6 Ministers of religion
6.7 Current Income Assessment 6.6 Current income assessment
6.7.1 Assessment based on current tax year 6.6.1 Assessment based on current tax year
6.7.2 Parental current income concession – fall in income
6.6.2 Current tax year assessment (fall in income)
6.7.3 Circumstance causing hardship
6.7.4 Substantial drop in parental income
6.7.5 Duration of fall in income
6.7.6 Current income concession – date of effect
6.7.7 Estimated income 6.6.3 Estimated income
6.7.8 Approval of estimated income 6.6.4 Approval of estimated income
6.7.9 Reverse current income (increase in income)
6.6.5 Reverse current income (increase in income)
6.8 Current AIC Scheme Income Limits 6.7 Current AIC Scheme income limits
6.8.1 Parental Income Free Area 6.7.1 Parental Income Free Area
6.8.2 Upper Income Limit 6.7.2 Upper Income Limit
6.9 Currency Exchange Rates 6.3.9 Income earned or received from overseas
Attachment A: Structure of Australian Schooling
3.3.1 Age limits